Andry Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Activity Cost Pools (and Activity Measures)
Estimated Overhead Cost
Machine related (machine-hours)
$177,000
Batch setup (setups)
$453,600
General factory (direct labor-hours)
$227,000
Expected Activity
Activity Cost Pools
Total
Product X
Product Y
Machine related
10,000
7,000
3,000
Batch setup
7,000
5,000
2,000
General factory
10,000
6,000
4,000
The activity rate for the batch setup activity cost pool is closest to:
A) $122.50
B) $226.80
C) $90.70
D) $64.80