Q1: Panamint Systems Corporation is estimating activity costs associated with pr

Question

Q1:

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.

Determine the activity rate for procurement per purchase order.

$76.65

$166.79

$19.13

$257.89

Q2:

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.

Determine the activity rate per production order for scheduling.

$19.28

$61.86

$167.49

$260.00

Q3:

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.

Determine the activity rate for materials handling per move.

$64.92

$77.21

$18.68

$140.53

Q4:

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.

Determine the activity rate for product development per change.

$34,244

$16,307

$8,153

$73,379

Q5:

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.

Determine the activity rate for production per machine hour.

$75.37

$20.94

$75.99

$151.36

Activity Cost
Activity Base Procurement $341,700 Number of purchase orders Scheduling $221,000 Number of production orders Materials handling $440,300 Number of moves Product development $778,500 Number of engineering changes Production $1,594,300 Machine hours
Number of
Purchase
Orders Number
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units Disk drives 3,860 310 1,400 13 2,000 1,800 Tape drives 2,100 235 510 3 8,200 3,700 Wire drives 11,900 780 4,200 26 10,600 2,300

Explanation / Answer

1) Activity rate of procurement = 341700/17860 = 19.13 per purchase order

So answer is c) $19.13

2) Activity rate of scheduling = 223600/1335 = 167.49 per

So answer is c) $167.49

3) Activity rate of material handling = 462500/5990 = 77.21

So answer is b) $77.21

4) Activity rate of product development = 750100/46 = 16307

So answer is b) $16307

5) Activity rate for production = 1597800/21200 = 75.37

So answer is a) $75.37

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.