Question 35 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 Number of purchase orders Procurement $ 370,000 Number of production orders Scheduling 250,000 Number of moves Materials handling 500,000 Number of engineering changes Product development 730,000 Machine hours Production 1,500,000 Number Number of of Purchase Orders Production Orders Number of Moves Number of Machine Number Engineering Hours of Changes Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 Determine the activity rate for procurement per purchase order. $37.00 $43.53 $15.42 $18.50
Question 35 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 Number of purchase orders Procurement $ 370,000 Number of production orders Scheduling 250,000 Number of moves Materials handling 500,000 Number of engineering changes Product development 730,000 Machine hours Production 1,500,000 Number Number of of Purchase Orders Production Orders Number of Moves Number of Machine Number Engineering Hours of Changes Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 Determine the activity rate for procurement per purchase order. $37.00 $43.53 $15.42 $18.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 35
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
Number of purchase orders
Procurement
$ 370,000
Number of production orders
Scheduling
250,000
Number of moves
Materials handling
500,000
Number of engineering changes
Product development
730,000
Machine hours
Production
1,500,000
Number
Number of of
Purchase
Orders
Production
Orders
Number
of
Moves
Number of Machine Number
Engineering Hours of
Changes
Units
Disk drives
4,000
300
1,400
10
2,000
2,000
Tape drives 4,000
150
800
10
8,000
4,000
Wire drives 12,000
800
4,000
25
10,000
2,500
Determine the activity rate for procurement per purchase order.
$37.00
$43.53
$15.42
$18.50
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