Martin Corporation manufactures two

productsPlows

and Harrows. The annual production and sales of Plows is

1,000

units, while

2,000

units of Harrows are produced and sold. The company has traditionally used direct labour hours to allocate its overhead to products. Plows require 5.0 direct labour hours per unit, while Harrows require 2.0 direct labour hours per unit. The total estimated overhead for the period is

$603,500.

The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools.

Activity cost pool	Estimated overhead cost	Expected activity: Plows	Expected activity: Harrows	Expected activity: Total
Setups	$50,000	200 batches	400 batches	600 batches
Machining	$337,500	1,700 machine hours	1,000 machine hours	2,700 machine hours
Assembly	$216,000	5,000 direct labour hours	4,000 direct labour hours	9,000 direct labour hours
Total	$603,500

The cost pool activity rate for Machining Costs would be closest to