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	$328,700		Number of purchase orders
   Scheduling	207,300		Number of production orders
   Materials handling	492,000		Number of moves
   Product development	716,100		Number of engineering changes
   Production	1,561,200		Machine hours

   	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
   Disk drives	3,950	430	1,350	12	1,800	1,800
   Tape drives	1,600	245	640	6	8,500	4,300
   Wire drives	12,600	960	4,300	20	11,100	3,000

   The activity rate for the production cost pool is

   a.$18.11 per machine hour

   b.$151.17 per machine hour

   c.$72.95 per machine hour

   d.$78.22 per machine hour