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 provided below.
-The activity-based cost for each wire drive unit is
A)$204.13
B)$173.51
C)$744.06
D)$394.12

Question

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 provided below.  ​
-The activity-based cost for each wire drive unit is
A)$204.13 
B)$173.51 
C)$744.06 
D)$394.12

Quizplus · Accepted Answer

The correct answer is determined by calculating the total costs assigned to the product based on the activities it consumes. Without specific data on the cost drivers, overhead rates, and the amount of each activity consumed by the wire drive unit, it's not possible to provide a detailed explanation. However, the correct answer is typically found by applying activity-based costing principles, which allocate overhead costs more accurately to products based on their use of activities.

Panamint Systems Corporation Is Estimating Activity Costs Associated with Producing