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 BaseProcurement$311,800Number of purchase ordersScheduling$230,200Number of production ordersMaterials handling$417,700Number of movesProduct development$777,000Number of engineering changesProduction$1,427,500Machine hours

Number of

Purchase

Orders

Number of

Production

Orders

Number

of

Moves

Number of

Engineering

Changes

Machine

Hours

Number

of

UnitsDisk drives4,1403801,330122,3001,600Tape drives2,10022552059,0003,600Wire drives12,3009303,7003011,7002,700

Determine the activity rate for product development per change.

a.$16,532

b.$74,394

c.$34,717

d.$8,266