stems 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 Procurement Scheduling $370,000 Number of purchase orders 250,000 Number of production orders Materials handling 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Number of Purchase Production Number of Number of Number Engineering Machine of Orders Orders Moves Changes Hours 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-based cost for each tape drive unit. Oa. $394.12 Ob. $232.69 Oc. $97.73 d. $103.84
stems 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 Procurement Scheduling $370,000 Number of purchase orders 250,000 Number of production orders Materials handling 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Number of Purchase Production Number of Number of Number Engineering Machine of Orders Orders Moves Changes Hours 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-based cost for each tape drive unit. Oa. $394.12 Ob. $232.69 Oc. $97.73 d. $103.84
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
am. 135.
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 four
separate activity pools. The budgeted activity cost and activity base data by product are provided below.
Activity Cost
Activity Base
Procurement
$370,000
Number of purchase orders
Scheduling
250,000
Number of production orders
Materials handling
500,000
Number of moves
Product development
730,000
Number of engineering changes
Production
1,500,000
Machine hours
Number of
Number of
Purchase
Production
Number
of
Number of
Number
Engineering
Machine
of
Orders
Orders
Moves
Changes
Hours
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-based cost for each tape drive unit.
a. $394.12
b. $232.69
c. $97.73
Od. $103.84
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