12. A company produces numerous blends of coffee, two of which are known as the Brazilian Blend and the Scandinavian Blend. The companys ABC system divides its total manufacturing overhead of $1,982,500 into four activity cost pools as shown below.

Activity		Activity Measure		Expected Activity				Estimated Cost
Purchasing		Purchase orders			1,500	orders		$	330,000
Materials handling		Number of setups			1,800	setups		$	540,000
Quality control		Number of batches			600	batches		$	210,000
Roasting		Roasting hours			95,000	hours		$	902,500

Data regarding production of the Brazilian and Scandinavian blends is as follows:

	Brazilian Blend				Scandinavian Blend
Expected sales		100,000	pounds		5,000	pounds
Batch size		10,000	pounds		1,250	pounds
Setups		3	per batch		3	per batch
Purchase order size		20,000	pounds		500	pounds
Roasting time per 100 pounds		0.5	hours		0.5	hours

Assume the company uses activity-based absorption costing. What is the activity rate for Quality Control?