Eric Parker 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 $1.133,500 is based on 45,340 machine hours. In an initial analysis of overhead costs, Eric has identified the following activity cost pools. Expected Cost Expected Activities 40,000 machine hours $ 680,000 Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage 320,000 5,000 Setups 67,500 1,500 batches 66,000 300,000 pounds $ 1.133.500 (a) Calculate the company's traditional overhead rate based on machine hours. s /MH Overhead rate (b) Calculate the company's overhead rates using the proposed activity-based costing pools. (Round answers to 2 decimal places, es 15.25) S /MH Product assembly $ setup Machine setup and calibration (b) Calculate the company's overhead rates using the proposed activity-based costing pools. (Round answers to 2 decimal places, eg. 15.25.) $ MH Product assembly $ y setup Machine setup and calibration $ /batch Product inspection /lb $ Raw materials storage