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A company makes two products-Product A and B. Data regarding the two products follow: Product A Product B Direct Labor-Hours per Unit 0.75 0.50 Annual

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A company makes two products-Product A and B. Data regarding the two products follow: Product A Product B Direct Labor-Hours per Unit 0.75 0.50 Annual Production 20,000 units 50,000 units Additional information is as follows: a. Product A requires $40 in direct materials per unit, and Product B requires $32. 6. The dirert labor wage rate is $18 per hour. c. The company's activity-based absorption costing system has the following activity cost pools. Activity Cost Pool (and Activity Measures) Machine setups (number of setups ) Special processing (machine-hours) General factory (Direct labor-hours) Estimated Overhead Cost $100,000 $200,000 $ 150,000 Expected Activity Product A Product B Total 100 300 400 2,000 6,000 8,000 15,000 25,000 40,000 What is the activity rate for the Machine setups activity? What is the activity rate for the Machine setups activity? Multiple Choice $250 $1,000 $333 $100

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