Penelope's Paperbooks is considering switching from a departmental manufacturing overhead rate to activity based costing for manufacturing overhead. Of the $2,500,000 of manufacturing overhead (MOH): Penelope's determined that $1,650,000 is related to the Assembly Dept. and $850,000 is related to the Packaging Dept. Penelope's will use machine hours (MH) to allocate Assembly Dept. costs Basic books 5,000 MH in Assembly Deluxe books 20,000 MH in Assembly Total 25,000 MH in Assembly Penelope's uses direct labor costs/dollars (DL$) to allocate Packaging Dept. costs. Basic books $990,000 DL$ in Packaging Deluxe books $360,000 DL$ in Packaging $1,350,000 DL$ in Packaging Total Activity Cost Cost Driver Basic Deluxe Total Binding $1,080,000 Machine hrs. 6,000 30,000 36,000 Machine set- ups 396,000 Set-up hrs. 40 400 440 Handling materials 144,000 Production runs 8 40 48 Inspecting & packing 414,000 DLH 60,000 22,800 82,800 Shipping 396,000 #shipments 100 200 300 Using the above information for Penelope's Paperbooks: What is the manufacturing overhead rate for the packaging department? (Round to the nearest 2 decimal places) O $1.85/DL$ $66/DL$ $.01/DL$ $0.63/DL$