Sheridan Company manufactures two types of safety strobe lights, one that is visible for one mile and one that is visible for two miles. Manufacturing overhead has been applied on the basis of direct labor costs. Sheridan Company has gathered some activity information and is interested in implementing an activity-based costing system. The company wants all overhead costs to be allocated to products. The overhead cost pools and activity drivers are as follows:

Activity Pool		Overhead Costs		Total Driver Usage
Machine setup		$49,966		2,300 setups
Assembly		54,600		30,000 machine hours
Total overhead costs		$104,566

Other product information follows:

		Beginner		Longboard
Units produced		21,800		13,800
Direct material		$6 per unit		$8 per unit
Direct labor		$8 per unit		$10 per unit
Direct labor cost		21,800		15,800
Machine setups		330		530
Machine hours		5,800		9,800

Using the activity-based costing approach, determine the two activity rates. (Round answers to 1 decimal places, e.g. 2.5.)

Setup activity rate			Assembly activity rate
$_____per setup			$___ per machine hour