QUESTION 24 A manufacturer uses activity-based costing to assign overhead cost to products. Budgeted cost information for its activities follows. Activity Purchasing Budgeted Cost Activity Cost Driver Budgeted Activity Usage $675,000 Factory services 160,000 Purchase orders Square feet Setups 22,500 25,000 250 purchase orders square feet Setup 325,000 Compute an activity rate for each activity Setups Purchasing: $32 per purchase order; Factory services: $8.00 per square foot; Setup: $1,440 per setup. O Purchasing: $30 per purchase order; Factory services: $6.40 per square foot; Setup: $1,300 per setup. Purchasing: $22 per purchase order; Factory services: $7.00 per square foot; Setup: $1,500 per setup. Purchasing: $34 per purchase order; Factory services: $9.10 per square foot; Setup: $1,100 per setup. Purchasing: $27 per purchase order; Factory services: $7.20 per square foot; Setup; $1,220 per setup.