Theoretical capacity for Madison Tool Company is 80,000 direct labor hours, and normal capacity is 50,000 direct labor hours. The actual capacity attained for the fiscal year ended June 30, 2003, was 43,000 hours. It is estimated that 40,000 hours will be worked in 2004. Fixed factory overhead is $ 400,000, and variable factory overhead is $ 6.69 per direct labor hour.

a. Using normal capacity, compute:

(i) The Fixed Factory Overhead Rate

(ii) The Total Factory Overhead Rate