Exercise 7-6 Smith Machining makes three products. The company's annual budget includes $1,036,200 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 detemined that overhead costs can be broken into four overhead pools: order processing, setups, milling, and shipping. The following is a summary of company information Expected Cost Expected Activities 12,000 orders Order processing Setups Milling Shipping 192,000 176,000 418,200 250,000 4,400 setups 20,400 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 Setups Milling Shipping per order per setup per machine hour per shipment LNK 10 IEXI