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 Number of purchase orders Procurement $371,400 Scheduling $247,400 Number of production orders Materials handling $477,000 Number of moves Number of engineering changes Product development $775,200 Production $1,442,100 Machine hours Number of Number of Number Number Number of Production Purchase of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,900 420 1,250 11 2,400 2,400 Tape drives 205 530 7 1,700 8,500 3,500 920 27 Wire drives 12,300 4,100 11,300 2,100 Determine the activity rate for production per machine hour. a. $64.96 b. $146.08 c. $20.75 Number of Number of Number Number of Number of of Purchase Production Engineering Machine Orders Changes Orders Moves Hours Units Disk drives 11 2,400 3,900 420 1,250 2,400 Tape drives 1,700 205 530 7 8,500 3,500 Wire drives 27 12,300 920 4,100 11,300 2,100 Determine the activity rate for production per machine hour. a. $64.96 b. $146.08 c. $20.75 d. $81.12