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Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drive
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Answer #1

The correct Answer is a. $20.71 per purchase order

Procurement Cost=$366,100

Total Purchase Order= 4,180+2,000+11,500

=17,680 Purchase Order

Activity Rate= Procurement Cost/Purchase Order

=366,100/17680

=$20.71 per purchase order

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