Machining Company has identified the following overhead costs, and activity drivers for the coming year Aclivity Expected Cost Activity Driver Seting up Acivity Grinding Receiving 560,000 4sosoNumber of setups 45,000uInspection hours $90,000 7veoMachine hoars 4500 to 8,000 50.000 Number of The company produces several different machine subassemblies used by other manufacturers. Information on separate batches for two of these subessem- blies follows Subassembly A Subassenbly Direct materials Direct labour Units completed $950 $600 50 Number of setups t Inspection hours . Machine hours Parts used 20 40 The company's normal activity is 20,000-direct labour hours. Each batch uses 5 1o. . 50 hours of direct labour Upon investigation, you discover that Receiving employs one worker, who spends 75 pgrcent of her time on the receiving activity o 5 and 25 percent of her time on ins ucts. Her salary is $40.000 Receiving also uses a forklift, at a cost o$6,000per year for amortization and Faet The forklift is used only in receiving ps Required: Choose the best answer for each of the following multiple-choice questions based on the preceding data for Milan Machining Company 1. The amount of cost assigned to the receiving activity is a. $40,000. 2. The activity rate for receiving is o tHoo 1850too$080 per part c. $0.812 per part d. $0.32 per part. 36000 0- None of the above. The activity rate for setting up equipment is 3. $200 per setup. b. $100 per setup. c. $20 per setup. d. $30,000 per setup. 600D0 The activity rate forgrinding is a. $18,000 per machine hour b. $1.80 per part $5.00 per machine hour. $4,500 per machine hour e. None of the above. 4