Kevin Hall 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 $1,028,060 is based on 51,403 machine hours. In an initial analysis of overhead costs, Kevin has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost $ 495,000 397,600 74,460 61.000 $ 1,028,060 Expected Activities 45,000 machine hours 5,600 setups 1,460 batches 305,000 pounds (a) Calculate the company's traditional overhead rate based on machine hours. $ Overhead rate /MH (b) Calculate the company's overhead rates using the proposed activity based costing pools. (Round answers to 2 decimal places, es, 15.25.) $ Product assembly / /MH $ Machine setup and calibration / setup $ /batch Product inspection $ b Raw materials storage