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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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $311,000 230,200 433,700 Number of moves 716,800 Number of engineering changes 1,452,000 Machine hours Number of Purchase Orders Activity Base Number of purchase orders Number of production orders 3,830 1,600 12,800 Number of Number Production of Moves Orders 390 205 1,450 610 980 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 O c. $19,373 per engineering change O d. $9,686 per engineering change Number of Engineering Changes 13 3 21 Machine Hours 1,800 8,200 10,500 Number of Units 2,000 4,200 2,700
Transcribed Image Text: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 and activity base data by product are provided below. Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $311,000 230,200 433,700 Number of moves 716,800 Number of engineering changes 1,452,000 Machine hours Number of Purchase Orders Activity Base Number of purchase orders Number of production orders 3,830 1,600 12,800 Number of Number Production of Moves Orders 390 205 1,450 610 980 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 O c. $19,373 per engineering change O d. $9,686 per engineering change Number of Engineering Changes 13 3 21 Machine Hours 1,800 8,200 10,500 Number of Units 2,000 4,200 2,700
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