16) Question Content Area

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:

Line Item Description	Activity Cost	Activity Base
Procurement	$364,900	Number of purchase orders
Scheduling	231,900	Number of production orders
Materials handling	473,500	Number of moves
Product development	729,000	Number of engineering changes
Production	1,441,600	Machine hours

Line Item Description	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	4,120	340	1,400	10	1,600	2,500
Tape drives	2,000	245	520	7	9,100	3,700
Wire drives	12,600	840	3,900	20	11,200	2,000

The activity-based cost (rounded to the nearest cent) for each disk drive unit is

a. $915.47

b. $231.93

c. $220.76

d. $19.49 22) Question Content Area

Botosan Factory has budgeted factory overhead for the year at $642,664, and budgeted direct labor hours for the year are 479,600. If the actual direct labor hours for the month of May are 436,400, the overhead allocated for May is

a. $497,060

b. $602,319

c. $584,776

d. $707,579

23) Question Content Area

The debits to Work in ProcessAssembly Department for April, together with data concerning production, are as follows:

Line Item Description	Amount
Materials cost, 3,000 units	$7,630
Conversion costs, 3,000 units, 40% completed	5,544
Materials added during April, 10,000 units	25,542
Conversion costs during April	30,212
Goods finished during April, 12,000 units
April 30 work in process, 1,000 units, 40% completed

All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is

a. $2.63

b. $3.02

c. $2.32

d. $2.70 25) Question Content Area

The debits to Work in ProcessAssembly Department for April, together with data concerning production, are as follows:

Line Item Description	Amount
Materials cost, 3,000 units	$7,630
Conversion costs, 3,000 units, 40% completed	5,544
Materials added during April, 10,000 units	25,542
Conversion costs during April	30,212
Goods finished during April, 12,000 units
April 30 work in process, 1,000 units, 40% completed

All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is

a. $2.63

b. $3.02

c. $2.32

d. $2.70