Reference no: EM132571839

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                          $392,100            Number of purchase orders

Scheduling                             217,100            Number of production orders

Materials handling                     413,000             Number of moves

Product development               746,800          Number of engineering changes

Production                               1,587,500                Machine hours

                      #Purchase Orders              #of Production            #ofMoves            #ofEngineering  Changes Machine Hours

Disk Dr.                    3,850                            310                    1,300                        15                        2,100

Tape Dr.                     2,000                             185                   650                         5                           8,500

Wire Dr.                       13,000                             800                   800                       23                             10,800

# of Units

Disk Dr. 1,700

Tape Dr. 4,300

Wire Dr. 2,300

Question 1: The activity-based cost for each tape drive unit is