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.
what will be the allocation rate for materials handling ?