The overhead costs that Lucca Industries, Inc., used to compute its over-

head rate for the past year are as follows:

Indirect materials and supplies $ 79,200

Repairs and maintenance 14,900

Outside service contracts 17,300

Indirect labor 79,100

Factory supervision 42,900

Depreciation%u2013machinery 85,000

Factory insurance 8,200

Property taxes 6,500

Heat, light, and power 7,700

Miscellaneous overhead 5,760

Total overhead costs $346,560

The allocation base for the past year was 45,600 total machine hours. For

the next year, all overhead costs except depreciation, property taxes, and miscel-

laneous overhead are expected to increase by 10 percent. Depreciation should

increase by 12 percent, and property taxes and miscellaneous overhead are

expected to increase by 20 percent. Plant capacity in terms of machine hours used

will increase by 4,400 hours.

1. Compute the past year%u2019s overhead rate. (Carry your answer to three decimal

places.)

2. Compute the overhead rate for next year. (Carry your answer to three deci-

mal places.