1. 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	$358,200		Number of purchase orders
   Scheduling	200,600		Number of production orders
   Materials handling	431,900		Number of moves
   Product development	715,200		Number of engineering changes
   Production	1,486,600		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	400	1,200	12	1,600	2,200
   Tape drives	2,000	185	770	6	9,600	4,500
   Wire drives	12,100	890	4,500	21	11,000	3,000

   The activity-based cost for each wire drive unit is

   a.$594.50

   b.$245.36

   c.$19.87

   d.$193.14