Portway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Tennis Racquets Golf Clubs Annual production and sales (units) 5,700 9,050 Direct materials cost per unit $ 5.20 $ 4.10 Direct labor cost per unit: Forming Department $ 3.00 $ 2.50 Finishing Department $ 6.50 $ 6.00 Machine-hours per unit: Forming Department 0.25 0.25 Finishing Department 0.00 0.50 In addition, the firm budgets manufacturing overhead at $46,250 in the Forming Department and $53,500 in the Finishing Department. Required: 1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.) 2. Determine the total cost per unit of tennis racquets and golf clubs. (Round your intermediate calculations and final answers to 2 decimal places.)