Solved: What is the cost allocation rate used for applying machine, Operation Management

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What is the cost allocation rate used for applying machine

Assume a company has the following information:

Activity Pools: Total Cost Activity Driver

Machine Setups $15,000 100 setups

Material Moves $22,500 225 material moves

Machine Operations $14,000 175 machine hours

Product X used the following quantity of activity drivers to produce 100 units of final product:

25 setups, 40 material moves and 75 machine hours

What is the cost allocation rate used for applying machine setup costs to product X?

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