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 Number of purchase orders $350,000 $237,000 Scheduling Number of production orders Materials handling $481,700 Number of moves Product development $722,800 Number of engineering changes Production $1,546,700 Machine hours Number Number of Purchase Orders Number of Production Orders of Number of Engineering Changes Machine Hours Number of Units Moves 3,940 370 1,300 Disk drives Tape drives 1,500 9,800 2,200 3,500 1,500 245 690 Wire drives 11,600 760 3,800 10,100 2,000 Determine the activity rate for production per machine hour. a. $83.2 b. $20.54 c. $72.28 d. $155.48