Hickory Company manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-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 Measure	Estimated Overhead Cost			Expected Activity
Machining	Machine-hours	$	200,000		10,000	MH
Machine setups	Number of setups	$	100,000		200	setups
Production design	Number of products	$	84,000		2	products
General factory	Direct labour-hours	$	300,000		12,000	DLHs

Activity Measure	Product Y			Product Z
Machine-hours		7,000			3,000
Number of setups		50			150
Number of products		1			1
Direct labour-hours		8,000			4,000

Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

Required: What is the activity rate for the Machine Setups activity cost pool