Driven Products ( DP) designs and produces automotive parts. In 2013, actual manufacturing overhead is $ 552,600. DP s simple costing system allocates manufacturing overhead to its three customers based on machine- hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so DP s controller Mike Jones realizes that it is time to examine the consumption of overhead resources more closely by adopting an activity- based costing ( ABC) system. He knows that there are three main activities that consume overhead resources: design, engineering, and production. Interviews with operating personnel and examination of time records yield the following detailed information.

			Usage of Drivers by Customer Contract
Activity	Cost Driver	Manufacturing Overhead in 2013	Bates Motors	Hathaway Motors	Landon Auto
Design	CAD-design-hours	$ 73,900	150	240	100
Engineering	Engineering- hours	75,700	90	120	230
Production	Machine- hours	403,000	160	2,010	1,300
Total		$ 552,600

Required (a) Compute the plant wide MOH rate if DB uses machine hours to allocate its overhead.

(b) Compute the three MOH rates using activity based costing.

Label each of your answers properly, for example $10. per direct labor hour, or per machine hour, etc.