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 $Z$ :

$\backslash$table$[[,,$Estimated$],[$Activity Cost Pool,Activity Measure,Overhead Cost,Expected Activity,$],[$Machining$,$Machine$-$hours,$$213,400,11,000$ MHs$,],[$Machine setups,Number of setups,$$61,600,140$ setups,$],[$Production design,Number of products,$$78,000,2$ products,$],[$General factory,Direct labor$-$hours,$$244,000,10,000$ DLHs$,]]$

$\backslash$table$[[$Activity Measure,Product Y$,$Product Z$],[$Machining$,7,400,3,600],[$Number of setups,$60,80],[$Number of products,$1,1],[$Direct labor$-$hours,$7,400,2,600]]$

Foundational $4-4($Algo$)$

$4.$ What is the activity rate for the Machine Setups activity cost pool?

Activity rate

per setup