Concord has budgeted overhead costs of $$1,105,650.$ It has allocated overhead on a plantwide basis to its two products $($wool and

cotton$)$ using direct labor hours which are estimated to be $526,500$ for the current year. The company has decided to experiment with

activity$-$based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting $($cost

driver is machine hours$)$ and design $($cost driver is number of setups$).$ Overhead allocated to the cutting cost pool is $$421,200$ and

$$684,450$ is allocated to the design cost pool. Additional information related to these pools is as follows.

$($a$1)$

Calculate the overhead rate using activity based costing. $($Round answers to $2$ decimal places, e$.$g$.12\mathrm{.}25.)$

Overhead rates for activity$-$based costing

Cutting $ per machine hour

Design $ per setup