Sunland Machining makes three products. The company's annual budget includes $1,007,700 of overhead. In the past, the company allocated overhead based on expected capacity of 40,308 direct labor hours. The company recently implemented an activity-based costing system and has determined that overhead costs can be broken into four overhead pools: order processing, setups, milling, and shipping. The following is a summary of company information:
Expected Cost
Expected Activities
Order processing
$
187,000
11,000 orders
Setups
183,300
4,700 setups
Milling
377,400
20,400 machine hours
Shipping
260,000
25,000 shipments
$ 1,007,700
(a) Calculate the company's traditional overhead rate based on direct labor hours.
$
Overhead rate
/DLH
(b) Calculate the company's overhead rates for each of the activity-based costing pools. (Round answers to 2 decimal places, e.g. 15.25.)
Order processing
$
per order
Setups
$
per setup
Milling
$
per machine hour
Shipping
$
per shipment
