Ayayai Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produces 5,100 nubby tires and 10,100 smooth tires each year and incurs $179,460 of overhead costs. The following information is available:

Activity

Total Cost

Cost Driver

Number of requisitions

Materials handling

$62.220

Number of setups

Machine setups

57,720

Quality inspections

59,520

Number of inspections

204 13%2

For the nubby tires, the company has 410 requisitions, 210 setups, and 210 inspections. The smooth tires require 610 requisitions, 310 setups, and 410 inspections.

Determine the overhead rate for each activity.