Question

Phelan 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 information, along with the estimated activity-base information, is provided below.

Answer 1

below

Step-by-step explanation:

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 Cost Activity Base

Procurement $383,000 Number of purchase orders

Scheduling 211,000 Number of production orders

Materials handling 425,500 Number of moves

Product development 710,900 Number of engineering changes

Production 1,420,000 Machine hours

Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units

Disk drives 4,200 450 1,260 11 2,500 2,100

Tape drives 1,600 125 500 6 8,000 4,200

Wire drives 12,200 800 4,200 20 11,100 2,500