Precision Manufacturing Inc. (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 60,000 units of EX300 and 12,500 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: EX300 TX500 Total Direct materials $366,325 $162,550 $528,875 Direct labor $120,000 $42,500 $162,500 The company is considering implementing an activity-based costing system the distributes all of its manufacturing overhead to four activities as shown below: Activity Cost Pool(and activity measure) Manufacturing overhead Activity EX300 TX500 Total Machining(machine-hour) $198,250 90,000 62,500 152,500 Setups(setup hours) 150,000 75 300 375 Product-level(number of products) 100,250 1 1 2 General factory(direct labor dollars) 60,125 120,000 42,500 162,500 Total manufacturing overhead cost 508,625 REQUIRED: 1. Compute the plantwide overhead rate that would be used in the company