95) Assume that company makes only two products: Product A and Product B. The companys activity-based costing system has allocated $153,000 to an activity called machine setups. It is considering allocating the machine setups cost its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures:

	Product A	Product B
Number of machine setups	30	45
Number of setup hours per setup	6	6

If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups

97) Assume that a company makes only three products: Product A, Product B, and Product C. Currently, the company uses a traditional cost system that relies on plantwide overhead cost allocation based on direct labor-hours. It is considering replacing its traditional cost system with an activity-based costing (ABC) system for internal management purposes. The ABC system would include a total of four activities: Assembly (allocated to products based on direct labor-hours), Machine Setups (allocated to products based on number of setups), Material Handling (allocated to products based on the number of material moves), and Product Design (allocated to products based on the number of products).

	Product A			Product B			Product C
Number of units produced	1,000	units		7,000	units		2,000	units
Direct labor hours per unit	2	hours		2	hours		2	hours
Number of setups	16	setups		50	setups		34	setups
Number of material moves	600	moves		400	moves		200	moves
Number of products	1	product		1	product		1	product

Using the activity-based costing approach, what percent of the companys total Machine Setups activity cost would be allocated to Product C?