Tercl, Inc. sells two products - Product A and Product B. This year the company sold 2.000 units of Product A and 10,000 units of Product B. Costs for direct materials and direct labor are as follows. Product A Product B Direct materials $25 $17 Direct labor ($12 per hour) $60 $48 Total manufacturing overhead for the year equaled $480,000. Tercl uses activity-based costing to allocate manufacturing overhead, The company's activity cost pools and related costs and activity are detailed below. Activity cost pools Estimated Expected activity - Expected Activity Total Expected overhead cost Product A Products Activity Labor related $ 30,000 10,000 direct labor 40,000 direct labor 50,000 direct labor hours hours hours Machine setups $150,000 3,000 setups 2.000 setups 5.000 setups General factory $250,000 12.000 machine 28.000 machine 40.000 machine hours hours hours Using the information given above for Tercel,Inc., what is the activity rate for machine setups