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	$305,000		Number of purchase orders
Scheduling	230,000		Number of production orders
Materials handling	422,300		Number of moves
Product development	769,400		Number of engineering changes
Production	1,401,400		Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,920	430	1,260	11	1,800	2,100
Tape drives	1,800	215	750	3	8,500	4,200
Wire drives	11,400	980	4,500	27	10,600	2,500

The activity rate for the production cost pool is

a.$131.92 per machine hour

b.$17.82 per machine hour

c.$64.87 per machine hour

d.$67.05 per machine hour