Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: G-09 G-35 Units produced 19,900 3,980 Direct materials cost per unit $7 $19 4 7 144 72 Machine-hours per unit Production runs per quarter Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Machine depreciation Setup labor Materials handling Total $ 107,460 53,730 42,984 $204,174 Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling Compute the cost driver rates for the proposed system at Heidelberg. Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling $ 190 per machine hour per machine hour per production run % direct material cost