Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire...

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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: Activity Cost Activity Base Procurement $354,100 Number of purchase orders Scheduling 206,400 Number of production orders Materials handling 453,800 Number of moves Product development 757,300 Number of engineering changes Production 1,573,500 Machine hours Number of Number of Number Number of Number Purchase Orders Production of Engineering Machine of Orders Moves Changes Hours Units Disk drives 3,800 360 1,330 12 2,000 2,100 Tape drives 2,500 135 600 8 8,200 3,500 Wire drives 11,500 710 4,000 29 11,800 2,500 The activity rate (rounded to the nearest cent) for the production cost pool is O a. $148.05 per machine hour Ob. $19.89 per machine hour O c. $71.52 per machine hour d. $76.53 per machine hour 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: Activity Cost Activity Base Procurement $354,100 Number of purchase orders Scheduling 206,400 Number of production orders Materials handling 453,800 Number of moves Product development 757,300 Number of engineering changes Production 1,573,500 Machine hours Number of Number of Number Number of Number Purchase Orders Production of Engineering Machine of Orders Moves Changes Hours Units Disk drives 3,800 360 1,330 12 2,000 2,100 Tape drives 2,500 135 600 8 8,200 3,500 Wire drives 11,500 710 4,000 29 11,800 2,500 The activity rate (rounded to the nearest cent) for the production cost pool is O a. $148.05 per machine hour Ob. $19.89 per machine hour O c. $71.52 per machine hour d. $76.53 per machine hour

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