Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tape drives, and wire...
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Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tape 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 $370,000 Number of purchase orders Scheduling 250,000 Number of production orders Materials handling 500,000 Number of moves Product development Production 730,000 Number of engineering changes 1,500,000 Machine hours Number of Number of Number Number of Number Purchase Orders Production of Engineering Machine of Orders Moves Changes Hours Units 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 The activity rate (rounded to the nearest cent) for the production cost pool is Oa. $75.00 per machine hour Ob. $150.00 per machine hour Oc. $176.47 per machine hour Od. $62.50 per machine hour Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tape 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 $370,000 Number of purchase orders Scheduling 250,000 Number of production orders Materials handling 500,000 Number of moves Product development Production 730,000 Number of engineering changes 1,500,000 Machine hours Number of Number of Number Number of Number Purchase Orders Production of Engineering Machine of Orders Moves Changes Hours Units 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 The activity rate (rounded to the nearest cent) for the production cost pool is Oa. $75.00 per machine hour Ob. $150.00 per machine hour Oc. $176.47 per machine hour Od. $62.50 per machine hour
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Related Book For
Managerial Accounting
ISBN: b010ikdqzm
10th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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