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				$303,200							Number of purchase orders
Scheduling				$201,700							Number of production orders
Materials handling				$461,900							Number of moves
Product development				$719,600							Number of engineering changes
Production				$1,564,000							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,830			320				1,390			12				1,800			1,900
Tape drives	2,200			205				500			4				8,500			3,800
Wire drives	11,700			820				3,500			30				12,000			2,900

Determine the activity rate for product development per change.

a. $32,851

b. $7,822

c. $15,643

d. $70,396