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 $Q$ :

Required:

What is the activity rate for the Machine setups activity cost pool?

Activity rate

per setup