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Assume a company has the following information:
Activity Pools: Total Cost Activity Driver
Machine Setups $15,000 100 setups
Material Moves $22,500 225 material moves
Machine Operations $14,000 175 machine hours
Product X used the following quantity of activity drivers to produce 100 units of final product:
25 setups, 40 material moves and 75 machine hours
What is the cost allocation rate used for applying machine setup costs to product X?
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