Mujla 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 systern:
Activity Cost Pools
(and Activity Measures)
Machine related (machine-hours)....
Estimated
Overhead Cost
$239,000
Batch setup (setups)..
$234,900
General factory (direct labor-hours)
$159,300
Expected Activity
Activity Cost Pools
Product X Product Y
Total
Machine related ...
4,000
6,000
10,000
Batch setup............
8,000
1,000
9,000
General factory....
3,000
6,000
9,000
The activity rate for the batch setup activity cost pool is closest to: