Sheridan Machining makes three products. The companys annual budget includes $1,104,300 of overhead. In the past, the company allocated overhead based on expected capacity of 40,000 direct labor hours. The company recently implemented an activity-based costing system and has determined that overhead costs can be broken into four overhead pools: order processing, setups, milling, and shipping. The following is a summary of company information:

		Expected Cost				Expected Activities
Order processing			$	283,900		17,000	orders
Setups				168,000		4,200	setups
Milling				377,400		20,400	machine hours
Shipping				275,000		25,000	shipments
			$	1,104,300

(a)

Calculate the companys overhead rate based on direct labor hours. (Round answer to 2 decimal places, e.g. 15.25.)

Overhead rate

$ / DLH

(b)

Calculate the companys overhead rates using the activity-based costing pools. (Round answers to 2 decimal places, e.g. 15.25.)

Order processing		$	per order
Setups		$	per setup
Milling		$	per machine hour
Shipping		$	per shipment