Panamint Systems Corporation is estimating activity costs associated with produc
ID: 2385272 • Letter: P
Question
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.Procurement $370,000 #of purchased orders
scheduling 250,000 # purch orders
material handling 500,000 # of moves
production development 730,000 # of engineering changes
production 1,500,000 machine hours
# of pur/ord # of Pro/ord # of moves # of eng/chg #of units
Disk drivers 4000 300 1400 10 2000 2000
Tape drives 4000 150 800 10 8000 4000
wire drive 12000 800 4000 25 10000 2500
Determine the activity-based cost for each tape drive unit.
a. $97.73
b. $394.12
c. $232.69
d. $103.84
Explanation / Answer
a. $97.73
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