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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	$355,900		Number of purchase orders
Scheduling	238,600		Number of production orders
Materials handling	477,600		Number of moves
Product development	774,600		Number of engineering changes
Production	1,414,400		Machine hours

	Number of Purchase Orders	Number of Production Orders	Number of Moves	Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	3,890	450	1,450	14	2,500	1,700
Tape drives	1,500	155	550	5	9,000	4,000
Wire drives	11,500	720	3,700	30	11,900	2,400

The activity rate for the product development cost pool is

a. $7,904 per engineering change

b. $71,137 per engineering change

c. $15,808 per engineering change

d. $33,197 per engineering change