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.

Activity Cost Pools		Estimated Use of Cost Drivers			Estimated Overhead Costs
Setting up machines		1,000	setups		$174,000
Assembling		87,000	labor hours		348,000
Inspection		1,200	inspections		313,200

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

		Overhead Rates
Setting up machines		$enter a dollar amount
Assembling		$enter a dollar amount
Inspection		$enter a dollar amount