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.
|Number of purchase orders|
|Number of production orders|
|Materials handling|| |
|Number of moves|
|Product development|| |
|Number of engineering changes|
Number of Engineering
|Disk drives|| |
|Tape drives|| |
|Wire drives|| |
Determine the activity rate for materials handling per move.
Materials handling cost
Materials handling total activity
Cost per move 500,000
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