Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.

Activity Cost Pool	Activity Measure	Total Cost	Total Activity
Machining	Machine-hours	$330,000	15,000	MHs
Machine setups	Number of setups	$ 50,000	100	setups
Product design	Number of products	$ 88,000	2	products
Order size	Direct labor-hours	$280,000	10,000	DLHs

Activity Measure	Product B56Z	Product D32N
Machine-hours	6,000	9,000
Number of setups	80	20
Number of products	1	1
Direct labor-hours	6,000	4,000

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

Multiple Choice

$625.00 per setup

$500.00 per setup

$3.33 per setup