Myra Inc. manufactures two products $-10,000$ units of Product P and $7,000$ units of Product $Q.$ The company uses a plantwide

overhead rate based on direct labour hours. It is considering implementing an activity$-$based costing $($ABC$)$ system that allocates all of

its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for

Products $P$ and $Q$ :

Activity Cost Pool

Machining

Machine setups

Product design

General factory

Estimated

Overhead

Cost Expected Activity

Machine$-$hours $$150,000,10,000MHs$

Number of setups $$220,000$

Number of products $ $$50,000$

$200$ setups

$2$ products

Direct labour hours $$180,00012,000$ DLHs

Activity Measure Product PProduct Q

Machining

Number of setups

Number of products

Direct labour hours

$6,000$

$4,000$

$150$

$50$

$1$

$8,000$

$4,000$

Required:

What is the activity rate for the Product Design activity cost pool?

Activity rate

per product