Cars Inc. makes two types of cars, Basic and Deluxe, and reports the following data to be used in applying activity-based costing. The company budgets production of 12,000 Basic cars and 4000 Deluxe cars. Using the information above compute the overhead rate for the machine setup activity cost pool using activity-based costing. $300 per setup $750 per setup $2,240 per setup $500 per setup