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. ActivityCost 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 730,000 Number of engineering changes Production 1,500,000 Machine hours Number ofPurchaseOrders Number of Production Orders NumberofMoves Number of EngineeringChanges MachineHours NumberofUnits 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 Determine the activity rate per production order for scheduling. Group of answer choices $200.00 $10.42 $29.41 $20.00
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. ActivityCost 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 730,000 Number of engineering changes Production 1,500,000 Machine hours Number ofPurchaseOrders Number of Production Orders NumberofMoves Number of EngineeringChanges MachineHours NumberofUnits 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 Determine the activity rate per production order for scheduling. Group of answer choices $200.00 $10.42 $29.41 $20.00
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
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Question
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.
|
Activity |
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 |
730,000 |
Number of engineering changes | ||||
| Production |
1,500,000 |
Machine hours | ||||
|
Number of |
Number of ProductionOrders |
Number |
Number of Engineering |
Machine |
Number |
|
| 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 |
Determine the activity rate per production order for scheduling.
Group of answer choices
$200.00
$10.42
$29.41
$20.00
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