A Midwest producer of specialty farming equipment, Agriboon, has three products that the company needs costing information about.

The following information is available for each product.

	XY263	GO987	TR345
Direct material cost per unit	$2.00	$8.00	$10.00
Direct labor cost per hour	$15.00	$16.75	$18.00

Agriboon presently applies overhead using a predetermined rate based on direct labor hours. Estimated Direct Labor hours for the year are 132,026.

The product leader for GO987 has suggested that Agriboon switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for the year:

Activity	Recommended Cost Driver	Estimated Cost	Estimated Cost Driver Units
Materials Handling	Requisition Request	$33,912	1256 Request
Machine Operations	Machine Hours	$1,425,000	12500 Hours
Safety Compliance	Compliance Test	$125,400	110 Test
	Total OH Cost	$1,584,312

What is the cost driver rate for Materials Handling Cost?

Group of answer choices

$0.04

$27

$12

$114