Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $370,000 Number of purchase orders Scheduling 250,000 Number of production orders Materials handling 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 The activity rate for the product development cost pool is a.$8,588 per engineering change b.$73,000 per engineering change c.$30,417 per engineering change d.$16,222 per engineering change

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement Scheduling Materials handling Product development $370,000 Number of purchase orders 250,000 Number of production orders 500,000 Number of moves 730,000 Number of engineering changes 1,500,000 Machine hours Production Number of Engineering Changes 10 10 Number of Number of Number Purchase Production of Orders Orders Moves Disk drives 4,000 300 1,400 Tape drives 4,000 150 800 Wire drives 12,000 800 4,000 The activity rate for the product development cost pool is Number of Units 2,000 Machine Hours 2,000 8,000 10,000 4,000 2,500 25 Oa. $8,588 per engineering change Ob. $73,000 per engineering change Oc. $30,417 per engineering change Od. $16,222 per engineering change