Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separateactivity pools. The budgeted activity cost and activity base data by product are as follows:ProcurementSchedulingMaterials handlingProduct developmentProductionDisk drivesTape drivesWire drivesActivity Cost$379,200245,800402,900728,7001,528,900Number ofPurchaseOrders3,8901,70013,000Activity BaseNumber of purchase ordersNumber of production ordersNumber of movesNumber of engineering changesMachine hoursc. $148.42 per machine hourO d. $20.4 per machine hourNumber of Number Number ofofMovesProductionOrders2801558701,3305003,600EngineeringChanges13320MachineHours1,5008,40010,700The activity rate (rounded to the nearest cent) for the production cost pool isO a. $74.2 per machine hourO b. $74.22 per machine hourONumberofUnits2,1003,9003,000

Name: Panamint Systems Corporation is estimating activity costs associated
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Description: Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separateactivity pools. The budgeted activity cost and activity base data by pro

Factory overhead refers to indirect manufacturing costs such as utilities and maintenance, not…

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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 five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost Activity Base $379,200 Number of purchase orders 245,800 Number of production orders 402,900 Number of moves 728,700 Number of engineering changes 1,528,900 Machine hours $149 42 Number of Purchase Orders 3,890 1,700 13,000 Number of Number of Moves Production Orders 280 155 870 1,330 500 3,600 The activity rate (rounded to the nearest cent) for the production cost pool is O a. $74.2 per machine hour b. $74.22 per machine hour thing haun Number of Engineering Changes 13 3 Machine Hours 20 1,500 8,400 10,700 Number of Units 2,100 3,900 3,000

Panamint 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 Product development Production Disk drives Tape drives Wire drives Activity Cost Activity Base $379,200 Number of purchase orders 245,800 Number of production orders 402,900 Number of moves 728,700 Number of engineering changes 1,528,900 Machine hours $149 42 Number of Purchase Orders 3,890 1,700 13,000 Number of Number of Moves Production Orders 280 155 870 1,330 500 3,600 The activity rate (rounded to the nearest cent) for the production cost pool is O a. $74.2 per machine hour b. $74.22 per machine hour thing haun Number of Engineering Changes 13 3 Machine Hours 20 1,500 8,400 10,700 Number of Units 2,100 3,900 3,000

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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. Activity Cost Activity Base Procurement $304,100 Number of purchase orders Scheduling 238,200 Number of production orders Materials handling 445,500 Number of moves Product development 734,300 Number of engineering changes Production 1,517,800 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,070 320 1,480 14 1,600 2,400 Tape drives 1,800 185 740 5 10,000 4,500 Wire drives 12,900 740 3,800 23 10,100 2,400 The activity-based cost for each tape drive unit is Oa. $725.11 Ob. $247.23 Oc. $201.36 Ód. $16.2
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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. Activity Cost Activity Base Procurement $331,200 Number of purchase orders Scheduling 206,700 Number of production orders Materials handling 450,000 Number of moves Product development 799,500 Number of engineering changes Production 1,521,400 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,030 290 1,340 13 2,100 1,600 Tape drives 2,500 175 600 8,400 3,900 Wire drives 11,200 730 3,600 22 10,400 2,800 The activity rate for the materials handling cost pool is O a. $81.23 per move Ob. $18.68 per move Oc. $72.79 per move Od. $172.97 per move
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Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base formation are provided as follows: Activity Procurement Scheduling Materials handling Product development Total cost Ovens Refrigerators Totals Activity Pool Cost $12,600 90,000 11,000 50,000 $163,600 The estimated activity-base usage and unit information for two product lines was determined as follows: Ovens Refrigerators Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders 400 300 700 Procurement (per purchase order) Scheduling (per production order) Materials handling (per move) Product development (per engineering change order) Activity Base Number of…
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. Activity Cost Activity Base Procurement $323,200 Number of purchase orders Scheduling 202,000 Number of production orders Materials handling 437,000 Number of moves Product development 700,700 Number of engineering changes Production 1,408,000 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,170 440 1,480 14 2,400 2,100 Tape drives 1,600 225 570 4 9,100 3,700 Wire drives 12,700 890 4,400 30 10,700 2,400 The activity rate for the procurement activity cost pool is a.$63.42 per purchase order b.$17.50 per purchase…
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