$100 per set up

$200,000 per set up

$133.33 per set up

$900 per set up

Bangor Company makes products C and D. Information for overhead costs and for the two products appears below. The company makes 50,000 units of product C each year and 20,000 units of product D ActivityDriver Setups Ordering # of parts parts Machining MH Inspections # of Ins Shipping Total Overhead Cost Prod C Usage $200,000 $300,000 Prod D usage 1,500 setups 40,000 parts # of setups 500 setups 60,000 parts $600,000 p $400,000 $300,000 12,000 MH 10,000 Insp 10,000 Ship 6,000 MH 40,000 Insp 10,000 Ship shipments Total overhead $1,800,000 Ship Shipments MH Machine Hours Insp Inspections Assume that activity based costing is used, with each activity in its own cost pool. What is the rate per setup that should be used to assign set up cost to product D