Required information

Upriver Parts manufactures two products, V$-1$ and V$-2,$ at its River Plant. Selected data for an average month for the two

products follow.

Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the

plant follow.

Required:

a$.$ Upriver currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the month? $($Round

your answer to $2$ decimal places.$)$

b$.$ Upriver 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 material handling. Compute the cost driver rates for the

proposed system at Upriver. $($Round "Machine depreciation" answer to $2$ decimal places.$)$