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.

$\backslash$table$[[$Activity Cost Pools,$\backslash$table$[[$Estimated$],[$Overhead$],[$Costs$]],\backslash$table$[[$Estimated Use of$],[$Cost Drivers$]]],[$Setting up machines,$$228,000,1,000$ setups$],[$Assembling$,380,000,76,000$ labor hours$],[$Inspection$,273,600,1,200$ inspections$]]$

Compute the activity$-$based overhead rates for these three cost pools.

Overhead Rates

Setting up machines

$

$/$setup

Assembling

$

$/$DLH

Inspection

$

$/$inspection