(b) Hermann is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs. Activity Cost Pools Setting up machines Assembling Inspection Estimated Use of Cost Drivers 1,000 setups 67,000 labor hours 1,200 inspections Estimated Overhead Costs $201.000 335,000 241,200 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines $ Assembling Inspection Save for Later Attempts: 0 of 2 used Submit