Question: 9 2 pts ABC Inc. is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced

9 2 pts ABC Inc. is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five 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 Purchase Orders of Number Production of Moves Number of Machine Number Engineering Hours of Changes Units Orders 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 Total 20,000) 1,250 6,200 15 45 20,000 8,500 Scheduling Number of production orders 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 Number Number of Machine Number Purchase Orders Production of Moves Engineering Hours of Changes Units Orders 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 Total 20,000 1,250 6,200 45 20,000 8,500 The rate for the scheduling activity cost pool is $29.41 per production order $200.00 per production order $20.00 per production order $10.42 per production order

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