Two of the activity cost pools for June's Company are (a) machining ($31,875) and (b) inspections ($9,520). Possible cost drivers are direct labor hours (3,700), machine hours (8,500), square footage (50,000), and number of inspections (1,700).

Use the best cost driver and compute the overhead rate for each activity.

Machining:

Amongdirect labor hours, machine hours, square footage, or number of inspections, which is the cost driver for machining cost pool? ____________

Overhead rate for machining=___________

Inspections

Amongdirect labor hours, machine hours, square footage, or number of inspections, which is the cost driver for inspections cost pool? __________

Overhead rate for inspections=_____________