Creathon Company€™s plant in Columbus€™s Ohio, manufactures two products: BR12 and BR15. Product BR15 has a more complex design and requires more setup time than BR12. Setups for BR12 require 2 hours on average; setups for BR15 require 3 hours. Creathon€™s setup department employs 10 workers whose average wage is $ 10 per hour; fringe benefits cost 38% of wages. Other costs for setup activities amount to $ 25 per setup. Creathon plans to use all 10 workers for 40 hours each for the first 3 weeks of the winter quarter. The number of setups for these 3 weeks follows:

a. Determine the actual setup activity cost driver rate for each week based on
(1) The number of setups and
(2) The number of setup hours.
b. Either of the two activity cost driver rates or some other rate appropriate in this case. Why?

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Number of Setups BR12 85 90 80 Week BR15 75 70 80