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Question: panamint systems corporation is estimating activity costs associated with producing...

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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 $316,400 Number of purchase orders
Scheduling $205,600 Number of production orders
Materials handling $499,400 Number of moves
Product development $710,900 Number of engineering changes
Production $1,565,900 Machine hours

Number of
Purchase
Orders

Number of
Production
Orders

Number
of
Moves

Number of
Engineering
Changes


Machine
Hours

Number
of
Units
Disk drives 4,140 260 1,250 11 2,200 2,100
Tape drives 2,300 165 550 5 10,000 3,500
Wire drives 11,700 990 3,800 22 11,500 2,400

Determine the activity rate for materials handling per move.

a.$66.07

b.$17.44

c.$89.18

d.$145.3

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