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	$370,000		Number of purchase orders
Scheduling	250,000		Number of production orders
Materials handling	500,000		Number of moves
Product development	730,000		Number of engineering changes
Production	1,500,000		Machine hours

	Number of Purchase Orders		Number of Production Orders		Number of Moves		Number of Engineering Changes		Machine Hours		Number of Units
Disk drives	4,000		300		1,400		10		2,000		2,000
Tape drives	4,000		150		800		10		8,000		4,000
Wire drives	12,000		800		4,000		25		10,000		2,500

Determine the activity-based cost for each tape drive unit.

a.$232.69

b.$394.12

c.$103.84