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: Activity Cost Activity Base Procurement $362,900 Number of purchase orders Scheduling 247,200 Number of production orders Materials handling 481,700 Number of moves. Product development 783,700 Number of engineering changes Production 1,441,000 Machine hours Number of Purchase Number of Production Number of Number of Number Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,940 340 1,250 15 2,500 2,500 Tape drives 2,500 225 660 6 8,300 3,800 Wire drives 12,700 730 4,500 27 10,800 2,000 The activity-based cost (rounded to the nearest cent) for each tape drive unit is O a. $939.81 Ob. $208.32 O c. $258.09 O d. $18.96 JO $ 74 I DELL 賞 F5 F6 F7 R 96 85 96 E F8 28 & 7 T Y U * 8 12:30 AM 6/12/202 Previous Next 86°F Partly sunny prt sc F9 F10 home F11 end F12 61 ) / / 0 P insert delete 11+ =

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 five separate activity pools. The budgeted activity cost and activity base data by product are as follows:
Activity Cost
Activity Base
Procurement
$362,900
Number of purchase orders
Scheduling
247,200
Number of production orders
Materials handling
481,700
Number of moves.
Product development
783,700
Number of engineering changes
Production
1,441,000
Machine hours
Number of
Purchase
Number of
Production
Number
of
Number of
Number
Engineering
Machine
of
Orders
Orders
Moves
Changes
Hours
Units
Disk drives
3,940
340
1,250
15
2,500
2,500
Tape drives
2,500
225
660
6
8,300
3,800
Wire drives
12,700
730
4,500
27
10,800
2,000
The activity-based cost (rounded to the nearest cent) for each tape drive unit is
O a. $939.81
Ob. $208.32
O c. $258.09
O d. $18.96
JO
$
74
I
DELL
賞
F5
F6
F7
R
96
85
96
E
F8
28
&
7
T
Y
U
* 8
12:30 AM
6/12/202
Previous
Next
86°F Partly sunny
prt sc
F9
F10
home
F11
end
F12
61
)
/ /
0
P
insert
delete
11+
=
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 five separate activity pools. The budgeted activity cost and activity base data by product are as follows: Activity Cost Activity Base Procurement $362,900 Number of purchase orders Scheduling 247,200 Number of production orders Materials handling 481,700 Number of moves. Product development 783,700 Number of engineering changes Production 1,441,000 Machine hours Number of Purchase Number of Production Number of Number of Number Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,940 340 1,250 15 2,500 2,500 Tape drives 2,500 225 660 6 8,300 3,800 Wire drives 12,700 730 4,500 27 10,800 2,000 The activity-based cost (rounded to the nearest cent) for each tape drive unit is O a. $939.81 Ob. $208.32 O c. $258.09 O d. $18.96 JO $ 74 I DELL 賞 F5 F6 F7 R 96 85 96 E F8 28 & 7 T Y U * 8 12:30 AM 6/12/202 Previous Next 86°F Partly sunny prt sc F9 F10 home F11 end F12 61 ) / / 0 P insert delete 11+ =
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