(3) Medway Models Inc. manufactures and sells model kits. The Historic Landmarks division produces two model kits: (1) Taj Mahal, and (2) Parthenon. Currently Medway uses a traditional costing system in which all manufacturing overhead is allocated to each product based on direct labor hours. Below is selected cost and production information for the most recent fiscal year:

	Taj Mahal	Parthenon
Units produced	200,000 units	300,000 units
DM cost per unit	$12.00	$16.00
DL cost per unit	$2.00	$2.00
OH cost per unit	$4.038	$4.038
Labor hours per unit	0.10 hrs	0.10 hrs
Machine hours per unit	0.20 Mhrs	0.40 Mhrs
Material weight per unit	3 lbs	4 lbs
Number of production set-ups	20 set-ups	60 set-ups
Number of shipments	10 shipments	30 shipments

Medway is considering adopting an activity-based costing system and has identified the following activities, their costs, and respective drivers:

Activity	Cost	Driver
Material Handling	$360,000	Material Weight
Setting-up Machines	$64,000	Production Set-ups
Operating Machines	$1,440,000	Machine Hours
Packaging the Product	$155,000	Units Produced

Determine the activity cost rate per set-up for Setting-up Machines.