The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:

A) $156.56 per setup
B) $199.06 per setup
C) $189.58 per setup
D) $36.95 per setup

Activity Rate

The predetermined overhead rate used in activity-based costing to assign overhead costs to products or services based on a specific activity.

Machine Setups

The process and associated costs of configuring machinery to produce a specific product or batch of products.

Activity Cost Pool

A compilation of all the costs related to a specific activity or process in cost accounting.