Greenwood Company manufactures two products$15,000$ units of Product Y and $7,000$ units of Product Z$.$ The company uses a plantwide overhead rate based on direct labor$-$hours. It is considering implementing an activity$-$based costing $($ABC$)$ system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity

Machining Machine$-$hours $ $227,70011,000$ MHs

Machine setups Number of setups $ $153,900270$ setups

Production design Number of products $ $91,0002$ products

General factory Direct labor$-$hours $ $257,00010,000$ DLHs

Activity Measure Product Y Product Z

Machining $8,7002,300$

Number of setups $60210$

Number of products $11$

Direct labor$-$hours $8,7001,300$

$7.$ Which of the four activities is a batch$-$level activity?

multiple choice

Machining activity

General factory activity

Product design activity

Machine setups activity