Cocoa Pet Corporation manufactures two models of grooming st…
Cocoa Pet Corporation manufactures two models of grooming stations, a Standard model and a Deluxe model. Total Overhead Costs are $160,000, which include Setup costs of $40,000 and Component-related costs of $120,000. In Traditional Costing system, Total Overhead Costs are allocated based on Direct Labor Hours. In Activity-based Costing system, number of Setups and number of Components are used as cost drivers for Setup costs and Component-related costs, respectively. Other information as below: Product Number of Setups Number of Components Number of Direct Labor Hours Standard 3 30 650 Deluxe 7 50 150 What is the Allocation Rate of Total Overhead Costs in Traditional Costing system?