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 $392,400 233,100 409,400 708,700 1,526,300 Machine hours Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders Number of Number of Moves Production Orders 4,090 1,800 12,000 The activity-based cost for each disk drive unit is Oa. $793.58 Ob. $21.93 Oc. $235.34 Od. $191.6 280 185 910 1,410 1 740 4,500 Number of Engineering Changes 11 7 23 Machine Hours 1,800 8,300 11,500 Number of Units 2,300 4,300 2,400
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![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
Activity Base
$392,400
Number of purchase orders
233,100 Number of production orders
409,400
Number of moves
708,700 Number of engineering changes
1,526,300 Machine hours
Number of
Purchase
Orders
Number of Number Number of
of
Moves
Engineering
Changes
11
7
23
Production
Orders
4,090
280
1,800
185
12,000
910
The activity-based cost for each disk drive unit is
Oa. $793.58
Ob. $21.93
Oc. $235.34
Od. $191.6
1
1,410
740
4,500
Machine
Hours
1,800
8,300
11,500
Number
of
Units
2,300
4,300
2,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F161bb000-4429-4b74-9f45-3098cdb2d833%2Fac2c11dd-f2ed-4231-a129-4a9ab13cb72d%2Fkohirx_processed.jpeg&w=3840&q=75)
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