Steel Company uses activity-based costing and reports the following for this year. Compute an activity rate for each activity using activity-based costing.

Activity	Budgeted Cost	Activity Cost Driver	Budgeted Activity Usage
Cutting	$ 62,100	Machine hours (MH)	2,700	machine hours
Assembly	288,100	Direct labor hours (DLH)	6,700	direct labor hours
Total	$ 350,200

A) $23 per MH for Cutting; $43 per DLH for Assembly. B) $43 per MH for Cutting; $23 per DLH for Assembly. C) $7 per MH for Cutting; $31 per DLH for Assembly. D) $23 per MH for Cutting; $107 per DLH for Assembly. E) $37 per MH for Cutting; $37 per DLH for Assembly.