Chinchilla, Inc. uses activity-based costing.The company produces X and Y.Information relating to the two products is as follows:

X

Y

Units produced

38,000

50,000

Machine-hours

15,000

17,000

Direct labor-hours

16,000

24,000

Materials handling (number of moves)

8,000

12,000

Setups

10,000

14,000

The following cost pools have been identified:

Activity

Cost driverTotal cost

Materials handling

Number of moves

$320,000

Labor-related overhead

Direct labor hours

$560,000

Setups

Number of setups

$480,000

Materials handling costs will be allocated to products at the rate of:

$57 per setup

$136 per setup

$48 per setup

$16 per setup