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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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