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 $302,500 Number of purchase orders Scheduling $245,100 Number of production orders Materials handling $456,200 Number of moves Product development $744,500 Number of engineering changes Production $1,406,100 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 4,030 420 1,440 12 1,600 1,700 Tape drives 2,300 225 620 5 9,100 3,600 Wire drives 12,700 790 3,700 29 11,700 3,000 Determine the activity rate for production per machine hour. a. $62.77 b. $141.97 c. $79.2 d. $15.9