Exercise 7-6 Smith Machining makes three products. The company's annual budget includes $1,000,000 of overhead. In the past, the company allocated overhead based on expected capacity of 40,000 direct labor hours. The company recently implemented an activity-based costing system and has determined that overhead costs can be broken into four overhead pools: order processing, setups, milling, and shipping. The following is a summary of company information: Order processing Setups Milling Shipping Expected Cost $ 175,000 160,000 410,000 255,000 $ 1,000,000 Expected Activities 10,000 orders 4,000 setups 20,500 machine hours 25,000 shipments (a) Calculate the company's overhead rate based on direct labor hours. (Round answer to 2 decimal places, e.g. 15.25.) Overhead rate $ / DLH (b) Calculate the company's overhead rates using the activity-based costing pools. (Round answers to 2 decimal places, e.g. 15.25.) Order processing per order Setups per setup per machine hour Milling per shipment Shipping