ar Company manufactures engines. Jar produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Electra International and Pariah Company. Both suppliers are reliable and rarely deliver late. Electra sells the component for $12.00 per unit, while Pariah sells the same component for $10.00. Jar purchases 80% of its components from Pariah because of the lower price it offers. The total annual demand is 95,000 units.

I. Activity Data
Activity Cost
Inspecting components (sampling only)	$ 210,000
Reworking products (due to failed component)	$2,454,000
Warranty work (due to failed component)	$1,923,000

II. Supplier Data
	Electra	Pariah
	International	Company
Unit purchase price	$12.00	$10.00
Units purchased	19,000	76,000
Sampling hours	60	2,600
Rework hours	150	3,800
Warranty hours	550	7,000

Calculate the activity rate for inspecting components based on sampling hours. (Note: Round answer to the nearest dollar.)

$80 per hour $72 per hour $79 per hour $75 per hour