Joseph Moore 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 $1,024,740 is based on 34,158 machine hours. In an initial analysis of overhead costs. Joseph has identified the following activity cost pools. Cost Pool Product assembly Expected Cost Expected Activities $ 684,000 38,000 machine hours Machine setup and calibration 249,400 4,300 setups Product inspection 50,540 1,330 batches Raw materials storage 40,800 240,000 pounds $ 1,024,740 (a) Calculate the company's traditional overhead rate based on machine hours. Overhead rate /MH