Required information

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Hickory Company manufactures two products$-15,000$ units of Product $Y$ and $7,000$ units of Product $Z.$

The company uses a plantwide overhead rate based on direct labor$-$hours. It is considering implementing

an activity$-$based costing $($ABC$)$ system that allocates all $$597,000$ of its manufacturing overhead to four

cost pools. The following additional information is available for the company as a whole and for Products

$Y$ and $Z$ :

Activity Measure

Machine$-$hours

Number of setups

Number of products

Direct labor$-$hours

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