help

Bonita, Inc. produces two types of gas grills: a family model and a deluxe model. Bonita's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Family Model $76,800 Deluxe Model $153,600 Direct labor costs Machine hours Setup hours 2.000 2.000 200 800 Total estimated overhead costs are $460,800. Overhead cost allocated to the machining activity cost pool is $276,480 and $184,320 is allocated to the machine setup activity cost pool. (a) Compute the overhead rate using the traditional (plantwide approach. (Round answer to 2 decimal places, eg. 15.25.) Overhead rate $