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 five separate activity pools. The budgeted activity cost and activity base data by product are as follows:

Line Item Description	Activity Cost	Activity Base
Procurement	$353,800	Number of purchase orders
Scheduling	202,800	Number of production orders
Materials handling	412,600	Number of moves
Product development	789,500	Number of engineering changes
Production	1,547,300	Machine hours

Line Item Description	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,970	300	1,380	12	2,500	2,300
Tape drives	1,800	215	700	6	8,400	4,500
Wire drives	12,000	770	4,200	20	10,800	2,200

The activity-based cost (rounded to the nearest cent) for each wire drive unit is

a. $19.91

b. $186.52

c. $828.16

d. $280.27