Chris Anderson has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $1,141,500 is based on 45,660 machine hours. In an initial analysis of overhead costs, Chris has identified the following activity cost pools. Expected Cost Expected Activities 39,000 machine hours Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage $ 780,000 270.000 4,500 Setups 54,000 1,350 batches 37,500 250,000 pounds $ 1,141.500 (a) Calculate the company's traditional overhead rate based on machine hours. MH Overhead rate (b) Calculate the company's overhead rates using the proposed activity-based costing pools (Round 15.25.) wers to 2 decimal places, es $ VMH Product assembly $ setup Machine setup and calibration $ /batch Product inspection $ /b Raw materials storage