Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:

Cost Pool Overhead Costs Activity$-$cost driver

Materials handling $ $45,00090,000$ orders

Machine maintenance $$300,00015,000$ maintenance hours

Setups $$270,00045,000$ setups

Inspections $$105,00021,000$ inspections

Total support costs $$720,000$

Production Estimates

Production units:

Regular $=8,000,000$ units

Jumbo $=16,000,000$ units

Machine$-$hours $=200,000$ mh

Labor$-$hours $=400,000$ dlh

Mayan Potters uses an ABC system and assigns overhead costs based on the overhead activity information provided above.

The inspections activity$-$cost driver rate is:

$$0\mathrm{.}50$

$$20\mathrm{.}00$

$$5\mathrm{.}00$

$$2\mathrm{.}00$

none of the above.