Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities-production setup materials handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Cost $250,000 Activity Production setup Material handling General overhead Activity Base Number of setups Number of parts Number of direct labor hours 150,000 80,000 Each product's total activity in each of the three areas are as follows: Products Product A 100 300 Number of setups Number of parts 40,000 8,000 20,000 12,000 Number of direct labor hours What is the activity rate for materials handling? Ca. 57.50 per part Ob. $1.50 per part Oc. $2.50 per part Od. $3.75 per part