(Not a repeat question.)Chuck's Guitar makes Traditional acoustic guitars and Concert Quality guitars. Both use essentially the same manufacturing processes:

1. A guitar neck is cut to shape from a wooden blank using an automated milling machine and enters the assembly area.

(not the focus of this problem.)

1. Plywood is cut in shapes that will ultimately form the figure-8-shaped box. Both guitar types use the same amount of plywood and are cut in the same way in this activity, but the Concert Quality guitar uses much higher quality plywood that is purchased in smaller quantities.
2. The cut plywood is shaped and glued into the traditional figure-8-shaped box, and the neck is added. The assembled guitar is finish-sanded.
3. Assembled guitars are moved to another area for finishing.
4. After assembly processes are complete, the assembly area is set-up (cleaned) for the next batch to start production.
5. All laborers earn $10 per hour and do not work when guitars are not being made.

The assembly activities typically take the same amount of labor time per guitar for both types of guitar (about one labor hour per guitar.)

Expected annual indirect costs for assembly activities: Assembly Activities include cutting the plywood for the box, shaping, gluing, attaching the milled neck, and sanding.

Activities
Plywood purchasing	$2,400
Plywood cutting	$6,000
Shape, Glue and Sand Guitar	$18,000
Setup of assembly area	$2,100
Total	$28,500

Other information expected for the year:

	Traditional	Concert Quality
Annual Production	400 guitars	200 guitars
Quantity of Wooden Blanks Milled	408 blanks	206 blanks
Milling Machine Hours	204 hours	154.5 hours
Batch size for production	50 guitars	10 guitar
Total Number of Plywood Purchase Orders	20 orders	40 orders
Total Direct Labor Hours @ 10/hr. (activities do not include Direct labor costs)	400 hours	200 hours
Total Direct Materials/guitar	$56 each	$80 each

Identify the appropriate driver and calculate the application rate for each of the following costs using ABC:

Activity		Cost Driver	Cost Driver Rate
Plywood purchasing	$2,400
Plywood cutting	$6,000
Shape, Glue and Sand Guitar	$18,000
Setup of Production area	$2,100

The best driver for plywood purchasing (given available data) and the cost driver rate are:

Group of answer choices

Number of purchase orders places, $40/order

Number of direct labor hours worked, $4/hour

Number of guitars produced, $4/guitar

Number of batched produced, $85.71/batch