Panamint Systems Corporation Is Estimating Activity Costs Associated with Producing

Multiple Choice

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. Determine the activity rate for production per machine hour.

A) $62.50
B) $150.00
C) $75.00
D) $176.47