A--A- Paragraph AaBbCcDd AaBbCc AaBbCc AaBbCeD AothCeD Aabl Aspen AaBbCcDd Normal Heading 1 Heading 2 Heading 3 Heading 4 Title Subtitle Emphasis Replace Select Styles Editing Shan Co. produces two different products (Product X and Product Y) using two different activities: Fabrication, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Fabrication is $387,500, while the cost of Inspection is $100,000. The activity drivers are used as follows: Product X Product Y Total Machine 500 1,500 2,000 hours Number of 45 15 60 batches What is the activity rate for Fabrication? a) $187.50 per machine hour b) $193.75 per machine hour c) $1,666.67 per machine hour d) $775.00 per machine hour