What will be the allocation rate for materials handling, Accounting Basics

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What will be the allocation rate for materials handling

Durable Engines Company uses ABC to account for it manufacturing process.

ActivitiesIndirect activity budget
Allocation base (cost driver)
Materials handling $ 36,000Based on number of parts
Machine setup $ 19,200Based on number of setups
Assembling $ 6,000Based on number of parts
Packaging $ 12,800Based on number of finished units

Durable Engines Company expects to produce 2,000 engines. Durable Engines Company also expects to use 12,000 parts and have 16 setups.

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