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The total factory overhead for Diva - nation is budgeted for the year at $ 1 8 0 , 0 0 0 , divided into

The total factory overhead for Diva-nation is budgeted for the year at $180,000, divided into four activities: cutting, $18,000;
sewing, $36,000; setup, $96,000; and inspection, $30,000. Diva-nation manufactures two types of men's pants: jeans and
khakis. The activity-base usage quantities for each product by each activity are as follows:
Each product is budgeted for 20,000 units of production for the year. What is the activity rates per direct labor hour for the
Inspection Department?
$6 per inspection
$7.50 per inspection
$22.50 per inspection
$40 per inspection
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