Yogi Inc Is a Small Company That Produces Yoga Mats and and Assorted

Multiple Choice

Yogi Inc. is a small company that produces yoga mats and assorted accessories. They have recently transitioned to Activity-Based Costing (ABC) and are in the process of creating a budget. They have compiled the following budgeted Manufacturing Overhead (MOH) costs which are divided into three key activities:
During the year, Yogi used 4,000 setup hours; 12,600 machine hours; and 2,300 inspection hours. If Yogi wants to use an activity rate that is tailored to each activity, then what rate would they use for each?

A) Setup, $12.50/setup hour; Production, $16.67/machine hour; and Quality Inspection, $13.28/inspection hour
B) Setup, $31.25/setup hour; Production, $16.67/machine hour; and Quality Inspection, $13.28/inspection hour
C) Setup, $31.25/setup hour; Production, $26.46/machine hour; and Quality Inspection, $46.17/inspection hour
D) Setup, $56.47/setup hour; Production, $28.23/machine hour; and Quality Inspection, $70.58/inspection hour