EcoFabrics has budgeted overhead costs of $$1,077,300.$ It has assigned overhead on a plantwide basis to its two products $($wool and cotton$)$ using direct labor hours which are estimated to be $513,000$ for the current year. The company has decided to experiment with activity$-$based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting $($cost driver is machine hours$)$ and design $($cost driver is number of setups$).$ Total estimated machine hours is $228,000,$ and total estimated number of setups is $1,710.$ Overhead allocated to the cutting cost pool is $$410,400$ and $$666,900$ is allocated to the design cost pool. Additional information related to product usage by these pools is as follows.

$\backslash$table$[[,$Wool,,Cotton$],[$Machine hours,$114,000,,114,000],[$Number of setups,$1,140,,570]]$

$($a$1)$

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

Overhead rates for activity$-$based costing

Cutting $ per machine hour

Design $ per setup