The overhead costs that Lucca Industries, Inc., used to compute its overhead rate for the past year are as follows:

Indirect materials and supplies ........ $ 79,200

Repairs and maintenance ........... 14,900

Outside service contracts ........... 17,300

Indirect labor ............... 79,100

Factory supervision ............ 42,900

Depreciation-machinery ........... 85,000

Factory insurance ............... 8,200

Property taxes ............... 6,500

Heat, light and power ............ 7,700

Miscellaneous overhead ............ 5,760

Total overhead costs ............. $346,560

The allocation base for the past year was 45,600 total machine hours. For the next year, all overhead cost except deprecation, property taxes, and miscellaneous overhead are expected to increase by 10 percent. Depreciation should increased by 12 percent, and property taxes and miscellaneous overhead are expected to increase by 20 percent. Plant capacity in terms of machine hours used will increase by 4,400 hours.

1. Compute the past year’s overhead rate. (Carry your answer to three decimal places).

2. Compute the overhead rate for next year. (Carry your answer to three decimal places).