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$375,000Number of purchase ordersScheduling$204,300Number of production ordersMaterials handling$467,400Number of movesProduct development$724,500Number of engineering changesProduction$1,563,400Machine hours

Number of

Purchase

Orders

Number of

Production

Orders

Number

of

Moves

Number of

Engineering

Changes

Machine

Hours

Number

of

UnitsDisk drives4,0804201,450152,1001,900Tape drives1,90020563039,4003,700Wire drives12,0007803,5002910,3002,200

Determine the activity rate for product development per change.