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$),$Type of Textbook,$],[$Machine maintenance $($$$420,000),$Number of machine hours,Deluxe,Moderate,Economy$],[$Setups $($$$720,000),$Number of setups,$300,900,1,200],[$Packing $($$$184,000),$Number of cartons,$10,10,5],[$Photo development $($$$500,000),$Number of pictures,$5,000,3,000,2,000]]$

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$],[60,000,180,000,240,000]]$

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.

$\backslash$table$[[,$Deluxe,Moderate,Economy$],[$a$.$ Cost per book $($volume$-$based allocation$),,,],[$b$.$ Cost per book $($activity$-$based costing$),13\mathrm{.}75,2\mathrm{.}82,2\mathrm{.}05]]$