Carson Weeks has been studying his department’s profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company’s approach to allocating overhead to products based on machine hours. The current department overhead budget of $804,980 is based on 38,000 machine hours. In an initial analysis of overhead costs, Carson has identified the following activity cost pools. Cost Pool Expected Cost Expected Activities Product assembly $ 319,200 38,000 Machine hours Machine setup and calibration 269,800 1,900 setups Product inspection 127,920 1,640 batches Raw materials storage 88,060 518,000 pounds $ 804,980 (a) Calculate the company’s overhead rate based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.) Overhead rate $ / MH (b) Calculate the company’s overhead rates using the proposed activity-based costing pools. (Round answers to 2 decimal places, e.g. 15.25.) Product assembly $ / MH Machine setup and calibration $ / setup Product inspection $ / batch Raw materials storage $ / lb.