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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 Activity Base $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Activity Cost Number of Purchase Orders Number of Number Number of Production Engineering Orders Changes 300 Moves 1,400 150 10 Disk drives 4,000 2,000 Tape drives 4,000 8,000 Wire drives 12,000 800 4,000 10,000 The activity rate (rounded to the nearest cent) for the procurement activity cost pool is O a. $18.50 per purchase order O b. $37 per purchase order O c. $43.53 per purchase order O d. $15.42 per purchase order 800 10 Machine Hours 25 Number of Units 2,000 4,000 2,500

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 Activity Base $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Activity Cost Number of Purchase Orders Number of Number Number of Production Engineering Orders Changes 300 Moves 1,400 150 10 Disk drives 4,000 2,000 Tape drives 4,000 8,000 Wire drives 12,000 800 4,000 10,000 The activity rate (rounded to the nearest cent) for the procurement activity cost pool is O a. $18.50 per purchase order O b. $37 per purchase order O c. $43.53 per purchase order O d. $15.42 per purchase order 800 10 Machine Hours 25 Number of Units 2,000 4,000 2,500

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 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 Base $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Activity Cost Number of Purchase Orders Number of Number Number of Production of Orders Moves c. $43.53 per purchase order O d. $15.42 per purchase order 300 150 1,400 800 Engineering Changes 4,000 2,000 4,000 8,000 12,000 4,000 10,000 The activity rate (rounded to the nearest cent) for the procurement activity cost pool is O a. $18.50 per purchase order O b. $37 per purchase order 800 10 10 Machine Hours 25 Number of Units 2,000 4,000 2,500 ( Previous Next
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: Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Base $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Activity Cost Number of Purchase Orders Number of Number Number of Production of Orders Moves c. $43.53 per purchase order O d. $15.42 per purchase order 300 150 1,400 800 Engineering Changes 4,000 2,000 4,000 8,000 12,000 4,000 10,000 The activity rate (rounded to the nearest cent) for the procurement activity cost pool is O a. $18.50 per purchase order O b. $37 per purchase order 800 10 10 Machine Hours 25 Number of Units 2,000 4,000 2,500 ( Previous Next
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