Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit T-SHIRTS 204,000 units SWEATSHIRTS 37,500 units $15.00 $29.00 $2.20 $5.00 $4.40 $7.20 $0.90 $3.00 $7.50 $13.80 $3.50 $7.00 $4.00 $6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Supervision 3 Inspection in Activities demanded T-SHIRTS 0.25 DLH/unit 51,000 DLHS 60,000 inspections Activity cost $114,240 $93,600 Activity-cost driver Direct labor hours (DLH) SWEATSHIRTS 1,2 DLH/unit 45,000 DLHS 18,000 inspections Inspections 13 Activities demanded T-SHIRTS 0.25 DLH/unit SWEATSHIRTS 1.2 DLH/unit 51,000 DLHS 60,000 inspections 45,000 DLHS 18,000 inspections Under the revised ABC system, the activity - cost driver rate for the supervision activity is OA. $2.54 OB. $1.19 OC. $2.24 OD. $1.20