nt Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Activity Cost $370,000 Activity Base Number of purchase orders 250,000 Number of production orders 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Purchase Number of Number Production Number of Number of Engineering Machine Orders Orders Moves Changes Hours of Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity-based cost (rounded to the nearest cent) for each wire drive unit is a. $204.13 b. $173.51 c. $744.06 d. $394.12 Previous Next
nt Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Activity Cost $370,000 Activity Base Number of purchase orders 250,000 Number of production orders 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Purchase Number of Number Production Number of Number of Engineering Machine Orders Orders Moves Changes Hours of Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity-based cost (rounded to the nearest cent) for each wire drive unit is a. $204.13 b. $173.51 c. $744.06 d. $394.12 Previous Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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