The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period.

	Product A				Product B
Number of units produced		20,000	units			2,400	units
Direct labor @ $20 per direct labor hour (DLH)		0.50	DLH per unit			2.00	DLH per unit
Direct materials cost	$	2	per unit		$	25	per unit

Overhead costs:	Total Cost				Activity Driver	Product A		Product B
Machine setup	$	1,600.00			setups	5	setups	15	setups
Quality inspections		30,000.00			inspections	60	inspections	140	inspections
Total	$	31,600.00

Using activity-based costing for assigning overhead costs, the activity rate for quality inspections is:

Multiple Choice

$150 per inspection

$120 per inspection

$300 per inspection

$80 per inspection

$100 per inspection