Use this information for Miramar Industries to answer the question that follow. Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities-production setup, materials 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 Base Number of setups Number of parts Number of direct labor hours Activity Production setup Material handling General overhead Cost $250,000 150,000 80,000 Each product's total activity in each of the three areas are as follows: Product A Product B Number of setups 100 300 20,000 Number of parts 40,000 Number of direct labor hours 8,000 12,000 What is the activity rate for materials handling? Oa. $3.75 per part O b. $2.50 per part Oc. $1.50 per part Od. $7.50 per part