The 195 Factory produces replacement parts and assemblies for vintage Cessna aircraft. The company is considering replacing its current costing system with an activity-based approach. It has identified three activities: computer-aided design; fabrication; and assembly and finishing. Data regarding these activities has been collected in the table below.

Activity	Driver	Driver Frequency	Activity Cost
Computer-aided design (CAD)	(CAD) hours	2,000	$1,000,000
Fabricating	Machine hours	2,000	$600,000
Assembly and finishing	Labor hours	8,000	$400,000

(A) What is the activity cost rate for the computer-aided design activity?

(B) Two jobs are currently complete and ready for delivery to the customer. One is a wing assembly that required raw materials costing $5,000 and consumed 40 hours of direct labor time. The wing assembly is a standard product that required only one hour of CAD time and three hours of machine time. What amount of overhead would the proposed activity-based costing system assign to this job?