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Adirondack Corporation is estimating activity costs associated with producing two different sized e-reader tablets. The indirect labor can be traced to three separate activity pools. The budgeted activity cost and activity base information, along with the estimated activity-base information, is provided below. All work must be shown for credit.
Activity
Cost
Activity Base
Purchasing
$ 300,000
Number of purchase orders
Materials handling
500,000
Number of moves
Production
1,500,000
Machine hours
TOTAL $2,300,000
Number of
Purchase
Orders
Number
of
Moves
Machine
Hours
Units
7" tablet
4,000
1,400
2,000
10' tablet
800
8,000
TOTALS
2,200
10,000
6,000
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