Question Content Area

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	$319,500		Number of purchase orders
Scheduling	211,500		Number of production orders
Materials handling	431,800		Number of moves
Product development	710,600		Number of engineering changes
Production	1,494,500		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	410	1,290	10	2,000	1,600
Tape drives	2,200	155	610	3	9,000	3,700
Wire drives	12,100	750	4,500	22	11,200	2,200

The activity-based cost for each wire drive unit is

a.$834.62

b.$350.31

c.$208.46

d.$17.46