Greenwood Company manufactures two products13,000 units of Product Y and 5,000 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	$ 246,000	12,000	MHs
Machine setups	Number of setups	$ 137,500	250	setups
Production design	Number of products	$ 89,000	2	products
General factory	Direct labor-hours	$ 357,000	14,000	DLHs

Activity Measure	Product Y	Product Z
Machining	8,500	3,500
Number of setups	40	210
Number of products	1	1
Direct labor-hours	8,500	5,500

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