Moshref Inc. produces two models of products, the O and Z models. The model O is the basic model and the model Z is the luxury model. An activity-based study has been performed regarding the production of the two models and the following activities and overhead amounts were found and estimated: setups of $90,000, purchasing of $175,000, inspections of $280,000, and machining of $400,000. The following data was collected regarding the two models: Model O Model Z Total Setups 15 15 30 Purchase orders 100 300 400 Inspections 30 40 70 Machine hours 2,000 4,000 6,000 Moshref Inc. is interested in using the above data to allocate overhead using an activity-based costing system. What are the activity-based rates for each activity (round each rate to 2 decimal places)?

a Setups $6,000/setup; Purchase orders $437.50/order; Inspections $4,000/inspection; Machining $66.67/hour

b Setups $6,000/setup; Purchase orders $583.33/order; Inspections $6,000/inspection; Machining $66.67/hour

c Setups $3,000/setup; Purchase orders $583.33/order; Inspections $4,000/inspection; Machining $100/hour

d Setups $3,000/setup; Purchase orders $437.50/order; Inspections $4,000/inspection; Machining $66.67/hour