Hermann is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost pools and related cost drivers to better understand these costs. Estimated Overhead Estimated Use of Activity Cost Pools Costs Cost Drivers Setting up machines $176,000 1,000 setups Assembling 264,000 88,000 labor hours Inspection 316,800 1,200 inspections Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines $ /setup