A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. The activity rate for Purchasing is: Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Purchasing $ 405,000 Purchase orders 13,500 purchase orders Factory services 96,000 Square feet 15,000 square feet Setup 195,000 Setups 150 Setups.

OPTION :

$6.40 per square foot.

$27.00 per purchase order.

$30.00 per purchase order.

$1,300.00 per setup.

$27.00 per square foot.