Final answer:
Typically, the allocated cost in the value stream is the charge per hour of machine usage. Firms choose the production technology with the lowest total cost, often determined by the per-hour costs of machinery and labor wages.
Step-by-step explanation:
The question is focused on understanding which type of allocated cost is typically considered in the value stream of a production facility. The typical allocated cost in the value stream is charge per hour of machine usage in the value stream. This means that the firm will account for the costs of operating machinery on a per-hour basis.
Understanding per-unit basis costs, such as fixed costs, average cost, average variable cost, variable costs, and marginal cost, is essential in determining the most efficient production technology. A production technology refers to the combination of labor and machinery used to produce goods. Firms often decide on a production technology based on the cost-effectiveness of these combinations, choosing the one with the lowest total cost.
In examples provided, different scenarios show how changes in wages and machine costs influence the choice of production technology. If machine costs are low, the firm may favor a technology that utilizes more machines and less labor, which would be technology 3 in the given examples.