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	$309,800		Number of purchase orders
Scheduling	207,900		Number of production orders
Materials handling	427,200		Number of moves
Product development	787,800		Number of engineering changes
Production	1,508,300		Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,930	330	1,340	11	1,800	1,800
Tape drives	2,400	165	710	4	8,100	3,600
Wire drives	13,000	700	4,400	20	10,400	2,100

The activity-based cost for each disk drive unit is

a.$878.32

b.$16.03

c.$328.05

d.$223.91