Current Attempt in Progress David Davis 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 $858,000 is based on 34.320 machine hours. In an initial analysis of overhead costs, David has identified the following activity cost pools. Expected Cost $ 547,500 Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage 220,000 Expected Activities 36,500 machine hours 4,000 setups 1,300 batches 225,000 pounds 45,500 45,000 $ 858,000 (a) Calculate the company's traditional overhead rate based on machine hours. $ Overhead rate / (b) Calculate the company's overhead rates using the proposed activity-based costing pools. (Round answers to 2 decimal places, eg. 15.25.) $ $ /MH Product assembly $ / setup Machine setup and calibration $ $ /batch Product inspection $ /lb Raw materials storage e Textbook and Media Save for Later Attempts: 0 of 3 used Submit