A company’s returns department incurs annual overhead costs of $72,000 and budgets 2,000 returns per year. Management believes it has found a better way to package its products. As a result, the company expects to reduce the number of shipments that are returned due to damage by 5%. This is expected to reduce the department’s annual overhead by $12,000. Compute the department’s standard overhead rate per return

(a) Before the sustainability improvement and 

(b) After the sustainability improvement.