A square bar $\frac{7}{8}$ in. on a side is to be milled from a circular rod. If the available rods are 1 in., $1 \frac{1}{4}$ in., $1 \frac{1}{2}$ in., and 2 in. in diameter, which rod should be used so there is the least waste? How much waste, in area, will there be with the selected rod? Round your answer to 2 decimal places.