Need help plz 1. 2. 3. Panamint Systems Corporation is estimating activity costs
ID: 2343007 • Letter: N
Question
Need help plz
1.
2.
3.
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 Procurement Scheduling Materials handling Product development Production Activity Cost $351,000 $234,700 $401,700 $714,200 $1,522,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Orders 4,080 2,500 Number of Production Orders 340 195 720 Number Number of Engineering Changes Number Machine Hours 2,100 8,000 11,400 Units 2,000 3,600 2,200 Moves 12 4 20 Disk drives Tape drives Wire drives Determine the activity-based cost for each tape drive unit. Oa. $308.49 Ob. $834.28 . $19.74 Od. $214.22 1,280 590 4,100 11,200Explanation / Answer
Solution to Question 1:
Activity
Activity Cost($)
Activity Drivers
Activity Rate
Procurement
351000
17780
Number of Purchase orders
1974.13%
Scheduling
234700
1255
Number of Production orders
18701.20%
Material handling
401700
5970
Number of moves
6728.64%
Product Development
714200
36
Number of engineering changes
1983888.89%
Production
1522000
21500
Machine hours
7079.07%
3223600
Tape Drive
Activity Rate
Activity Driver Incurred
Overhead Assigned($)
Procurement
1974.13%
2500
49353
Scheduling
18701.20%
195
36467
Material handling
6728.64%
590
39699
Product Development
1983888.89%
4
79356
Production
7079.07%
8000
566326
771201
Activity based cost for each tape drive unit = Total Overhead assigned/ Number of Units
=771201/3600
= $ 214.22
Activity
Activity Cost($)
Activity Drivers
Activity Rate
Procurement
351000
17780
Number of Purchase orders
1974.13%
Scheduling
234700
1255
Number of Production orders
18701.20%
Material handling
401700
5970
Number of moves
6728.64%
Product Development
714200
36
Number of engineering changes
1983888.89%
Production
1522000
21500
Machine hours
7079.07%
3223600
Tape Drive
Activity Rate
Activity Driver Incurred
Overhead Assigned($)
Procurement
1974.13%
2500
49353
Scheduling
18701.20%
195
36467
Material handling
6728.64%
590
39699
Product Development
1983888.89%
4
79356
Production
7079.07%
8000
566326
TOTAL771201
Activity based cost for each tape drive unit = Total Overhead assigned/ Number of Units
=771201/3600
= $ 214.22