Computing activity-based costing rates}

The partners of Fiorelli and Tracey, Attorneys-at-Law, decide to implement an activity-based costing system for their firm. They identify the following three cost pools and budgeted amounts for each for the coming year: fringe benefits, \(\$ 350,000\); paralegal support, \(\$ 500,000\); and research support, \(\$ 650,000\). It is determined that the best cost driver for fringe benefits is professional labor dollars ( \(\$ 400,000\) ), for paralegal support is partner labor hours \((4,000)\), and for research support is professional labor hours \((50,000)\).

Compute the budgeted overhead rates for each of the three cost pools.