The activity rate for the production cost pool is? a. $62.50 per machine hour b. $150.00 per machine hour c. $176.47 per machine hour d. $75.00 per machine hour

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 $ 370,000 Number of purchase orders Scheduling 250,000 Number of production orders Materials handling 500,000 Number of moves Product development 730,000 Number of engineering changes Production 1,500,000 Machine hours Disk drives Tape drives Wire drives Number of Number of Number Number of Purchase Production of Engineering Machine Orders Orders Moves Changes Hours 4,000 300 1,400 10 2,000 4,000 150 800 10 8,000 12,000 800 4,000 25 10,000 Number of Units 2,000 4,000 2,500