Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follow Model E Model G 4 Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct labor hours 8,000 12,000 Materials handling (number of moves) 4,000 6,000 Setups 5,000 7,000 Purchase orders 30 40 Inspections 10,000 14,000 Product line vanations 8 12 The following overhead costs are reported for the following activities of the production process: Materials handling Labor-related overhead Setups Product design Batch inspections $40,000 120,000 60,000 100,000 120,000 70,000 Central purchasing Appleby Manufacturing has used activity-based costing to assign costs to Models F and G as given in the following table: Activity Cost Pool Materials handling $ 40.000 Driver. Pool Rate 10.000 Model F Activity Model F Cost Model G Activity Model G Cost Totals $ 4 4.000 $ 16.000 6.000 $ 24.000 $40,000 Labor-related overhead Setups Product design Batch inspections 120,000 60,000 100,000 120,000 70,000 Central purchasing Appleby Manufacturing has used activity-based costing to assign costs to Models F and G as given in the following table: Model F Activity Cost Pool Driver Pool Rate Model F Cost Activity Model G Activity Model G Totals Cost Materials handling $ 40,000 10,000 $ 4 4,000 $ 16,000 6,000 $ 24,000 $ 40,000 Labor-related overhead 120,000 20,000 6 8,000 48,000 12,000 72,000 120,000 Setups 60,000 12,000 5 5,000 25,000 7,000 35,000 60,000 Product design 100,000 20 5,000 8 40,000 12 60,000 100,000 Batch inspections 120,000 24,000 5 10,000 50,000 14,000 70,000 120,000 Central purchasing 70,000 70 1,000 30 30.000 40 40,000 70.000 Totals $209,000 $301,000 $510,000 Appleby Manufacturing wants to implement an approximately relevant ABC system by using the two most expensive activities for cost assignment. Under this new approach, what is the new pool rate for batch inspection costs? (Round to two decimal places.) Oa. $10.625 Ob. $5 Oc. $15.525 Od. 50