Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost an base data by product are provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $311,000 Number of purchase orders 230,200 Number of production orders 433,700 Number of moves 716,800 Number of engineering changes 1,452,000 Machine hours Disk drives Tape drives Wire drives Number of Purchase Orders 390 1,450 205 610 980 4,000 The activity rate for the product development cost pool is O a. $40,683 per engineering change O b. $87,178 per engineering change Oc. $19,373 per engineering change O d. $9,686 per engineering change Number of Number Production of Moves Orders 3,830 1,600 12,800 Number of Engineering Changes 13 3 21 Machine Hours 1,800 8,200 10,500 Number of Units 2,000 4,200 2,700

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost an base data by product are provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $311,000 Number of purchase orders 230,200 Number of production orders 433,700 Number of moves 716,800 Number of engineering changes 1,452,000 Machine hours Disk drives Tape drives Wire drives Number of Purchase Orders 390 1,450 205 610 980 4,000 The activity rate for the product development cost pool is O a. $40,683 per engineering change O b. $87,178 per engineering change Oc. $19,373 per engineering change O d. $9,686 per engineering change Number of Number Production of Moves Orders 3,830 1,600 12,800 Number of Engineering Changes 13 3 21 Machine Hours 1,800 8,200 10,500 Number of Units 2,000 4,200 2,700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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