#42

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.

	Activity Cost		Activity Base
Procurement	$367,900		Number of purchase orders
Scheduling	205,300		Number of production orders
Materials handling	491,100		Number of moves
Product development	757,500		Number of engineering changes
Production	1,531,700		Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,850	290	1,400	10	2,200	1,700
Tape drives	1,900	145	720	8	9,200	3,900
Wire drives	12,400	890	3,900	26	11,500	2,600

The activity rate for the scheduling activity cost pool is

a.$277.66 per production order

b.$154.94 per production order

c.$20.27 per production order

d.$66.89 per production order