Assume that company makes only two products: Product A and Product B$.$ The company's activity$-$based costing system has

allocated $$117,000$ to an activity called machine setups. It is considering allocating the machine setups cost to its products

using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these

two potential activity measures:

If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups?

Multiple Choice

$$9,575$

$$260$

$$350$

$$9,750$