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	$358,982						Number of purchase orders
Scheduling	$200,726						Number of production orders
Materials handling	$452,391						Number of moves
Product development	$760,657						Number of engineering changes
Production	$1,537,063						Machine hours
	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,992			331				1,403			13				2,350			1,916
Tape drives	2,216			165				592			6				9,522			4,450
Wire drives	11,944			994				3,740			20				10,349			2,849

Determine the activity rate for product development per change. Round to the nearest cent.

Select the correct answer.

$19.78

$78.88

$19,504.03

$69.17