1. 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	$367,100		Number of purchase orders
   Scheduling	243,700		Number of production orders
   Materials handling	469,900		Number of moves
   Product development	724,300		Number of engineering changes
   Production	1,550,000		Machine hours

   	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
   Disk drives	4,170	440	1,370	15	2,200	1,800
   Tape drives	1,800	195	660	6	9,700	3,700
   Wire drives	11,500	900	4,400	30	11,100	2,900

   The activity rate for the production cost pool is

   a.$140.47 per machine hour

   b.$21.01 per machine hour

   c.$73.08 per machine hour

   d.$67.39 per machine hour