Multiple Choice
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: 
What is the activity rate for production setup?
A) $2,500 per setup
B) $833 per setup
C) $625 per setup
D) $400 per setup
Correct Answer:
Verified
Correct Answer:
Verified
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