(iviti) Eric Parker has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $1,133,500 is based on 45,340 machine hours. In an initial analysis of overhead costs, Eric has identified the following activity cost pools. (a) Calculate the company's traditional overhead rate based on machine hours. Overhead rate (b) Calculate the company's overhead rates using the proposed activity-based costing pools. (Round answers to 2 decimal ploces, eg. 15.25.) Product assembly Machine setup and calibration $$5/MH/setup