Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late. Hydra sells the component for $12.00 per unit, while Parable sells the same component for $10.00. Fame purchases 80% of its components from Parable because of the lower price it offers. The total annual demand is 95,000 units. I. Activity Data Inspecting components (sampling only) Reworking products (due to failed component) Warranty work (due to failed component) Activity Cost $ 210,000 $2,454,000 $1,923,000 II. Supplier Data Hydra International $12.00 Unit purchase price Units purchased Sampling hours Rework hours Warranty hours 19,000 60 Parable Company $10.00 76,000 2.600 3,800 7,000 150 550 Calculate the activity rate for warranty work based on warranty hours. (Note: Round answer to the nearest dollar.) Oa. $262 per hour b. $264 per hour OR nor hour Hydra Parable 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 warranty work based on warranty hours. (Note: Round answer to the nearest dollar.) Oa. $262 per hour Ob. $264 per hour Oc. $268 per hour Od. $287 per hour Oe. $255 per hour