19) Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.

Activity Cost Pool	Activity Measure	Total Cost		Total Activity
Machining	Machine-hours	$	330,000	15,000	MHs
Machine setups	Number of setups	$	50,000	100	setups
Product design	Number of products	$	88,000	2	products
Order size	Direct labor-hours	$	280,000	10,000	DLHs

Activity Measure	Product B56Z	Product D32N
Machine-hours	6,000	9,000
Number of setups	80	20
Number of products	1	1
Direct labor-hours	6,000	4,000

What is the activity rate for the Machine Setups activity cost pool?

rev: 03_17_2018_QC_CS-119201

Multiple Choice

• A) $500.00 per setup

• B) $3.33 per setup

• C) $2,500.00 per setup

• D) $625.00 per setup