Hayden Co. produces two different products (Product A and Product B) using two different activities: Fabrication, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Fabrication is $775,000, while the cost of Inspection is $100,000. The activity drivers are used as follows:

Product C Product 2 Total

Machine hours 1,000 3,000 4,000

Number of batches 45 15 60

What is the activity rate for Inspection?

$12,916.67 per batch

$1,500.00 per batch

$2,222.22 per batch

$1,666.67 per batch