Multiple choice:

Mooshu Company identifies three activities in its manufacturing process: machine setups, machining, and inspections.Estimated annual overhead cost for each activity is $150,000, $325,000, and $87,500 respectively.The cost driver for each activity and the expected annual usage are: number of setups 2,500, machine hours 25,000, and number of inspections 1,750.Previously, the company estimated overhead costs based on machine hours, however, the company is now interested in exploring activity-based costing.The activity rate for inspections would be:

Group of answer choices

a. $60 per inspection

b. $321.43 per inspection

c. $50 per inspection

d. $22.50 per inspection