John Johnson 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 $651,360 is based on 21,712 machine hours. In an initial analysis of overhead costs, John has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost $ 379,500 183,600 39,060 49,200 $ 651,360 Expected Activities 34,500 machine hours 3,600 setups 1,260 batches 205,000 pounds (a) Calculate the company's traditional overhead rate based on machine hours. $ /MH Overhead rate (b) Calculate the company's overhead rates using the proposed activity-based costing pools. (Round answers to 2 decimal places, eg. 15.25.) $ /MH Product assembly $ Machine setup and calibration / setup Product inspection /batch $ /lb Raw materials storage