Brooke Corporation uses activity-based costing to determine product costs for external financial reports. Activity rates computed at the beginning of the year are used to apply manufacturing overhead costs to products. The company has provided the following data concerning its activity-based costing system. The data used to develop activity rates were:

Activity Cost Pools	Estimated Overhead Cost	Expected Activity
Machine related (machine-hours)	$777,400	26,000	MHs
Batch setup (setups)	$1,814,400	28,000	setups
General factory (direct labour-hours)	$478,800	18,000
The actual activity for the year was:
		Actual Activity for the Year
Activity Cost Pools	Total	Product X	Product Y
Machine related (machine-hours)	28,000	17,000	11,000
Batch setup (setups)	28,000	7,000	21,000
General factory (direct labour-hours)	18,000	9,000	9,000

The actual total manufacturing overhead cost incurred for the year was $3,064,400. The activity rate computed at the beginning of the year for the batch setup activity cost pool is closest to:

Multiple Choice

• $64.80.

• $86.40.

• $109.70.

• $259.20.