Answer:
d.$181.78
Explanation:
The formula used for activity rate is activity cost divided by the activity base cost.
Panamint Systems Corporation
Activity Cost Activity Base
Procurement $308,500 Number of purchase orders
Scheduling $244,500 Number of production orders
Materials handling $419,700 Number of moves
Product development $720,200 Number of engineering changes
Production $1,538,300 Machine hours
Disk drives Tape drives Wire drives
Number of Purchase Orders 4,080 2,300 11,300
Number of Production Orders 450 155 740
Number of Moves 1,320 520 4300
Number of Engineering Changes 11 4 23
Machine Hours 2,400 8,200 10,600
Number of Units 1600 4,400 2,500
<em>As there are three kinds of drives the total activity base cost is obtained by adding the base cost of each drive.</em>
Scheduling per production= Scheduling Cost/ Number of production orders
=$244,500 / 450+ 155 +740
= $244,500 / 1345= 181.78
