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$393,600Number of purchase ordersScheduling$241,200Number of production ordersMaterials handling$426,600Number of movesProduct development$766,500Number of engineering changesProduction$1,417,300Machine hours

Number of

Purchase

Orders

Number of

Production

Orders

Number

of

Moves

Number of

Engineering

Changes

Machine

Hours

Number

of

UnitsDisk drives4,0304301,450122,4002,200Tape drives2,40015555039,1003,900Wire drives12,9008703,5002410,6002,900

Determine the activity rate for procurement per purchase order.

a.$270.52

b.$64.13

c.$20.36

d.$165.77