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	$350,900		Number of purchase orders
Scheduling	248,500		Number of production orders
Materials handling	494,800		Number of moves
Product development	760,300		Number of engineering changes
Production	1,547,500		Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,870	430	1,500	14	2,300	2,000
Tape drives	2,400	245	650	3	8,900	3,500
Wire drives	11,900	910	3,500	21	10,000	2,400

The activity rate for the production cost pool is

a.$19.31 per machine hour

b.$87.58 per machine hour

c.$160.58 per machine hour

d.$73 per machine hour