Tigra Company Manufactures Engines II Supplier Data -Refer to the Figure

Multiple Choice

Tigra Company manufactures engines. Tigra produces all the parts necessary for its engines except for one electronic component, which is purchased from two local suppliers: Customer 1 and Customer 2. Both suppliers are reliable and rarely deliver late; however, Customer 1 sells the component for $10.00 per unit and Customer 2 sells the same component for $8.95. Hamilton purchases 70% of its components from Customer 2 because of the lower price. The total annual demand is 75,000 units.
I. Activity Data
$\begin{array}{ll}\text { Inspecting components (sampling only) } & \$ 190,000 \\\text { Reworking products (due to failed component) } & \$ 2,254,000 \\\text { Warranty work (due to failed component) } & \$ 1,723,000\end{array}$
II. Supplier Data
$\begin{array}{lrr}&\text { Customer } 1&\text { Customer } 2\\\text { Units Purchase Price } & \$ 10.00 & \$ 8.95 \\\text { Units Purchased } & 22,500 & 52,500 \\\text { Sampling Hours } & 50 & 2,450 \\\text { Rework Hours } & 135 & 3,625 \\\text { Warranty Hours } & 475 & 6,000\end{array}$
-Refer to the Figure.What is the activity rate for reworking products on the basis of rework hours?

A) $595 per hour
B) $599 per hour
C) $602 per hour
D) $605 per hour