New Microsoft Word Document 21 wiew View Help Search 17 cc 1 Normal No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em. Empha! graph Styles Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities-production setup, material handling, and general factory activities. Miramar uses activity based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Activity Production setup Material handling General overhead Cost $250,000 150,000 80,000 Activity Base Number of setups Number of parts Number of direct labor hours Each product's total activity in each of the three areas are as follows: Number of setups Number of parts Number of direct labor hours Product 100 40,000 8,000 Product B 300 20,000 12.000 What is the activity rate for production setup? a $2,500 per setup b.$833 per setup c.$400 per setup d. $625 per setup (Ctrl