Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct N6Product N7TotalLabor-relatedDLHs$345,0602,1005,0007,100Machine setupssetups 128,5346008001,400Order sizeMHs 107,5984,1003,8007,900 $581,192 ?The activity rate for the Machine Setups activity cost pool is closest to:
A. $28.32 per setup
B. $91.81 per setup
C. $26.24 per setup
D. $73.57 per setup
Answer: B
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