Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below: Tennis Racquets Golf Clubs Annual production and sales (units) 5,100 8,150 Direct materials cost per unit $ 4.60 $ 3.50 Direct labour cost per unit: Forming Department $ 4.00 $ 3.50 Finishing Department $ 6.50 $ 5.00 Machine-hours per unit: Forming Department 0.25 0.25 Finishing

1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.)

2. Determine the total cost per unit of tennis racquets and golf clubs. (Round your intermediate calculations and final answers to 2 decimal places.)