Current Attempt in Progress Eric Parker 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 $1.133,500 is based on 45,340 machine hours. In an initial analysis of overhead costs, Eric has identified the following activity cost pools. Cost Pool Product assembly Expected Cost Expected Activities 680,000 40,000 machine hours Machine setup and calibration 320,000 5,000 setups Product inspection 67,500 1,500 batches Raw materials storage 66,000 300,000 pounds $ 1,133,500 (a) Calculate the company's traditional overhead rate based on machine hours. $ Overhead rate /MH