Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $205,900, $416,500, an $81,000, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,900, machine hours 24,500, and number of inspections 1,500.

Compute the overhead rate for each activity.

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d. all of the above are true.

answer; rapid growth in buyer demand and high buyer switching cost;