College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company employees recommended that CSC switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for Year 5 for each activity center. Recommended Cost Driver Estimated Cost Estimated Cost Driver Units Setting up production Processing orders Handling materials Using machines Providing quality management Packing and shipping Number of production runs Number of orders Pounds of materials Machine-hours Number of inspections Units shipped 5 22.400 48,000 18,000 48,000 56,000 42.000 80 runs 200 orders 9,000 pounds 8,000 hours 40 inspections 21,000 units 5234,400 In addition, management estimated 2,000 direct labor-hours for year 5 Assume that the following cost driver volumes occurred in February, year 5 Short 1.000 Medium Tall Number of units produced Direct materials costs Direct labor-hours Number of orders Number of production runs Pounds of material Machine-hours Number of inspections Units shipped 500 54,000 3.000 1.500 110 120 100 400 600 800 300 200 300 1,000 500 300 Direct labor costs were S22 per hour. Required: a. Compute a predetermined overhead rate for year 5 for each cost driver recommended by the employees. Also compute a predetermined rate using direct labor-hours as the allocation base. (Round your answers to 2 decimal places.) Activit Allocation Rate Setting up production Processing orders Handling materials Using machines Performing quality management Packing & shipping Direct labor hour rate per order per lb per hour per insp per unit per hour