Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives

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 $385,600 Number of purchase orders Scheduling $227,900 Number of production orders Materials handling $491,300 Number of moves Product development $759,900 Number of engineering changes Production $1,477,900 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 3,810 400 1,470 14 1,600 1,900 Tape drives 1,700 135 570 6 9,100 3,600 Wire drives 11,400 750 3,900 30 10,100 2,400 Determine the activity rate for product development per change.

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