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 budgetedactivity cost and activity base data by product are provided below.ProcurementSchedulingMaterials handlingProduct developmentProductionDisk drivesTape drivesWire drivesActivity CostActivity Base$392,400Number of purchase orders233,100 Number of production orders409,400Number of moves708,700 Number of engineering changes1,526,300 Machine hoursNumber ofPurchaseOrdersNumber of Number Number ofofMovesEngineeringChanges11723ProductionOrders4,0902801,80018512,000910The activity-based cost for each disk drive unit isOa. $793.58Ob. $21.93Oc. $235.34Od. $191.611,4107404,500MachineHours1,8008,30011,500NumberofUnits2,3004,3002,400

Name: Panamint Systems Corporation is estimating activity costs associated
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Description: 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 budgetedactivity cost and activity base data by pro

Activity-based costing is a method of allocating the indirect cost to products as per the activity…

Business

Accounting

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 Disk drives Tape drives Wire drives Activity Cost $392,400 233,100 409,400 708,700 1,526,300 Machine hours Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders Number of Number of Moves Production Orders 4,090 1,800 12,000 The activity-based cost for each disk drive unit is Oa. $793.58 Ob. $21.93 Oc. $235.34 Od. $191.6 280 185 910 1,410 1 740 4,500 Number of Engineering Changes 11 7 23 Machine Hours 1,800 8,300 11,500 Number of Units 2,300 4,300 2,400

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 Disk drives Tape drives Wire drives Activity Cost $392,400 233,100 409,400 708,700 1,526,300 Machine hours Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Number of Purchase Orders Number of Number of Moves Production Orders 4,090 1,800 12,000 The activity-based cost for each disk drive unit is Oa. $793.58 Ob. $21.93 Oc. $235.34 Od. $191.6 280 185 910 1,410 1 740 4,500 Number of Engineering Changes 11 7 23 Machine Hours 1,800 8,300 11,500 Number of Units 2,300 4,300 2,400

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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Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: a. Determine the activity rate for each activity. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round to the nearest cent.
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 Disk drives Tape drives Wire drives Activity Cost $390,900 200,200 479,700 Number of moves Activity Base Number of purchase orders Number of production orders Number of Purchase Orders 4,160 2,100 12,900 770,600 Number of engineering changes 1,491,500 Machine hours Number of Number Production of Orders Moves 1,400 520 250 155 820 4,500 The activity rate for the procurement activity cost pool is Oa. $20.40 per purchase order Ob. $65.70 per purchase order Oc. $319.10 per purchase order Od. $163.43 per purchase order Number of Engineering Changes 14 4 23 Machine Hours 1,700 9,800 11,200 Number of Units 1,800 4,400 2,300
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: Procurement Scheduling Materials handling Product development Production Disk drives Tape drives Wire drives Activity Cost $379,200 245,800 402,900 728,700 1,528,900 Number of Purchase Orders 3,890 1,700 13,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours c. $148.42 per machine hour O d. $20.4 per machine hour Number of Number Number of of Moves Production Orders 280 155 870 1,330 500 3,600 Engineering Changes 13 3 20 Machine Hours 1,500 8,400 10,700 The activity rate (rounded to the nearest cent) for the production cost pool is O a. $74.2 per machine hour O b. $74.22 per machine hour O Number of Units 2,100 3,900 3,000
Surratt Corp is projecting activity costs associated with producing disk drives, tapes drives, and wire drives. Indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. What is the activity rate for the procurement activity cost pool? Procurement Scheduling Materials handling Product development Production Activity Cost $ 370,000 250,000 500,000 730,000 1.500,000 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Production Orders Number Number of Machine Engineering Hours Changes Number of Number of of Moves 1.400 Orders Units Disk drives 300 2,000 2,000 4,000 4,000 12,000 10 Tape drives Wire drives. 150 800 10 8,000 4,000 800 4,000 25 10,000 2,500
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 Disk drives Tape drives Wire drives Activity Cost $378,400 221,900 402,900 770,700 Number of engineering changes 1,402,800 Machine hours Number of Purchase Orders Activity Base Number of purchase orders Number of production orders Number of moves 4,160 2,100 11,100 Production Orders Number of Number of Moves 250 175 1,200 540 860 4,300 The activity rate for the materials handling cost pool is Oa. $63.76 per move Ob. $21.8 per move Oc. $172.68 per move Od. $66.71 per move Number of Engineering Machine Changes Hours 15 2,500 5 9,200 10,300 27 Number of Units 1,600 4,300 2,000
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 $364,200 Number of purchase orders Scheduling 243,400 Number of production orders Materials handling 417,300 Number of moves Product development 773,900 Number of engineering changes Production 1,428,300 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,120 270 1,500 11 2,200 2,100 Tape drives 2,400 245 500 7 8,500 3,500 Wire drives 11,500 790 3,500 21 10,700 2,400 The activity-based cost for each tape drive unit is Oa. $291.69 Ob. $239.52 Oc. $740.06 Od. $20.21
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 $339,200 Number of purchase orders Scheduling 204,100 Number of production orders Materials handling 459,900 Number of moves Product development 775,100 Number of engineering changes Production 1,593,800 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,050 260 1,370 10 2,300 2,500 Tape drives 1,600 125 600 3 8,700 4,200 Wire drives 12,000 780 3,700 30 10,600 2,000 The activity rate for the scheduling activity cost pool is
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 Activity Base $362,500 Number of purchase orders 244,700 Number of production orders 486,700 Number of moves 766,200 Number of engineering changes 1,535,800 Machine hours Disk drives Tape drives Wire drives Number of Number of Number Number of of Moves Purchase Orders Production Orders 4,090 270 2,400 225 11,900 760 The activity-based cost for each disk drive unit is Oa. $665.88 Ob. $300.73 Oc. $208.11 Od. $19.71 1,240 780 3,500 Engineering Changes 15 6 25 Machine Hours 2,500 10,000 10,200 Number of Units 2,200 4,500 2,700
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 $309,800 Number of purchase orders Scheduling 207,900 Number of production orders Materials handling 427,200 Number of moves Product development 787,800 Number of engineering changes Production 1,508,300 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,930 330 1,340 11 1,800 1,800 Tape drives 2,400 165 710 4 8,100 3,600 Wire drives 13,000 700 4,400 20 10,400 2,100 The activity-based cost for each disk drive unit is a.$878.32 b.$16.03 c.$328.05 d.$223.91
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 $385,600 Number of purchase orders Scheduling $227,900 Number of production orders Materials handling $491,300 Number of moves Product development $759,900 Number of engineering changes Production $1,477,900 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,810 400 1,470 14 1,600 1,900 Tape drives 1,700 135 570 6 9,100 3,600 Wire drives 11,400 750 3,900 30 10,100 2,400 Determine the activity rate for product development…
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 Activity Base $365,600 Number of purchase orders 245,100 Number of production orders 411,700 Number of moves 716,200 Number of engineering changes 1,470,000 Machine hours Disk drives Tape drives Wire drives Number of Number of Number Number of Production of Engineering Orders Moves Changes Purchase Orders 1,310 620 4,200 The activity rate for the scheduling activity cost pool is Oa. $20.55 per production order Ob. $61.00 per production order Oc. $238.18 per production order Od. $159.67 per production order 4,090 2,100 11,600 370 175 990 10 7 27 Machine Hours 2,500 9,600 12,000 Number of Units 2,200 3,800 2,700 Previous Next