Vaughn Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining (machine hours) and machine setup (number of setups). The total estimated machine hours is 2,700 , and the total estimated number of setups is 510 . Presented below is information related to the company's operations. Total estimated overhead costs are $291,000. Overhead cost allocated to the machining activity cost pool is $189,000, and $102,000 is allocated to the machine setup activity cost pool. Compute the overhead rates using the activity-based costing approach. MachiningMachinesetup$$permachinehourpersetup