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 $377,200 Number of purchase orders Scheduling $219,700 Number of production orders Materials handling $498,400 Number of moves Product development $780,800 Number of engineering changes Production $1,545,800 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,120 330 1,370 15 2,000 2,100 Tape drives 1,600 205 620 5 9,600 4,100 Wire drives 12,000 940 4,500 28 11,600 2,500 Determine the activity rate for production per machine hour. a.$76.8 b.$143.43 c.$21.29 d.$66.63 The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: Setups Inspections Assembly (dlh) Small Lamps - 4,000 units 3,100 9,150 40,400 Desk Lamps - 11,000 units 6,200 15,250 40,400 Activity Pool Activity Base Budgeted Amount Setups 9,300 $95,790 Inspections 24,400 $148,840 Assembly (dlh) 70,700 $282,800 Calculate the overhead per unit to be charged to small lamps. a.$62.34 b.$112.21 c.$87.28 d.$37.40 When Isaiah Company has fixed costs of $127,400 and the contribution margin is $28, the break-even point is a.12,860 units b.9,100 units c.5,100 units d.4,550 units
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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 | $377,200 | Number of purchase orders | |||||||||||||||||
| Scheduling | $219,700 | Number of production orders | |||||||||||||||||
| Materials handling | $498,400 | Number of moves | |||||||||||||||||
| Product development | $780,800 | Number of engineering changes | |||||||||||||||||
| Production | $1,545,800 | Machine hours | |||||||||||||||||
Number of Purchase Orders |
Number of Production Orders |
Number of Moves |
Number of Engineering Changes |
Machine Hours |
Number of Units |
||||||||||||||
| Disk drives | 4,120 | 330 | 1,370 | 15 | 2,000 | 2,100 | |||||||||||||
| Tape drives | 1,600 | 205 | 620 | 5 | 9,600 | 4,100 | |||||||||||||
| Wire drives | 12,000 | 940 | 4,500 | 28 | 11,600 | 2,500 |
Determine the activity rate for production per machine hour.
The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total
| Setups | Inspections | Assembly (dlh) | |
| Small Lamps - 4,000 units | 3,100 | 9,150 | 40,400 |
| Desk Lamps - 11,000 units | 6,200 | 15,250 | 40,400 |
| Activity Pool | Activity Base | Budgeted Amount |
| Setups | 9,300 | $95,790 |
| Inspections | 24,400 | $148,840 |
| Assembly (dlh) | 70,700 | $282,800 |
Calculate the overhead per unit to be charged to small lamps.
When Isaiah Company has fixed costs of $127,400 and the contribution margin is $28, the break-even point is
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