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	$329,900		Number of purchase orders
   Scheduling	223,700		Number of production orders
   Materials handling	426,300		Number of moves
   Product development	762,500		Number of engineering changes
   Production	1,434,200		Machine hours

   	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
   Disk drives	3,900	300	1,450	12	1,700	2,200
   Tape drives	1,500	165	540	8	10,000	3,700
   Wire drives	12,600	820	4,500	22	11,100	3,000

   The activity rate for the procurement activity cost pool is

   a.$62.90 per purchase order

   b.$18.33 per purchase order

   c.$256.73 per purchase order

   d.$174.09 per purchase order