Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes.

$\backslash$table$[[$Activity $($Cost$),$Cost Driver,Deluxe,$\backslash$table$[[$e of Textb$],[$Moderate$]],$Economy$],[$Machine maintenance $($$$370,000),$Number of machine hours,$370,1,110,1,480],[$Setups $($$$750,000),$Number of setups,$40,20,15],[$Packing $($$$190,000),$Number of cartons,$20,30,50],[$Photo development $($$$762,000),$Number of pictures,$5,900,3,900,2,900]]$

Deluxe textbooks are made with the finest$-$quality paper, six$-$color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings.

Required

a$.$ Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year:

$\backslash$table$[[$Deluxe$,$Moderate,Economy$],[50,000,150,000,200,000]]$

Determine the overhead cost per book for each book type.

b$.$ Determine the overhead cost per book, assuming that the volume$-$based allocation system described in Requirement a is replaced with an activity$-$based costing system.

Note: For all requirements, round your answers to $2$ decimal places.