ULJ) 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. Terol 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 overhead cost Expected activity - Product A Expected Activity - Product B Total Expected Activity Labor-related $ 80,000 10,000 direct labor hours 40,000 direct labor 50,000 direct labor hours hours Machine setups $150,000 3,000 setups 2,000 setups 5,000 setups General factory $250,000 12,000 machine hours 28,000 machine hours 40,000 machine hours Using the information given above for Tercel, Inc., what is the activity rate for machine setups? $75 per machine setup O $50 per machine setup O $30 per machine setup $5,000 per machine setup