Question Content Area Panamint Systems Corporation is estimating activity costs associated with producing disk...

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Accounting

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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 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	$302,300	Number of purchase orders
Scheduling	210,400	Number of production orders
Materials handling	461,000	Number of moves
Product development	762,200	Number of engineering changes
Production	1,497,300	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	3,920	300	1,430	13	2,000	1,700
Tape drives	1,500	215	770	5	8,100	3,700
Wire drives	11,200	760	3,800	20	10,300	2,700

The activity rate (rounded to the nearest cent) for the materials handling cost pool is

a. $165.02 per move

b. $76.83 per move

c. $18.19 per move

d. $73.4 per move

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