|
Activity
Cost
|
Activity Base |
| Procurement |
$370,000
|
Number of purchase orders |
| Scheduling |
250,000
|
Number of production orders |
| Materials handling |
500,000
|
Number of moves |
| Product development |
730,000
|
Number of engineering changes |
| Production |
1,500,000
|
Machine hours |
| |
| |
Number of
Purchase
Orders
|
Number
of
Production
Orders
|
Number
of
Moves
|
Number of Engineering
Changes
|
Machine
Hours
|
Number
of
Units
|
| Disk drives |
4,000
|
300
|
1,400
|
10
|
2,000
|
2,000
|
| Tape drives |
4,000
|
150
|
800
|
10
|
8,000
|
4,000
|
| Wire drives |
12,000
|
800
|
4,000
|
25
|
10,000
|
2,500
|
Determine the activity rate per production order for scheduling.