Problem 7-20 Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.Activity PoolDepartment CostsCost DriverBinding$257,922Number of unitsPrinting794,052Machine hoursProduct design196,236Change ordersGeneral641,700None Total overhead costs$1,889,910Other information is as follows:TabletsBooksUnits62,90020,000Direct materials cost per unit$2.86$10.44Direct labor cost per unit$3.87$8.12Direct labor hours25,40016,000Machine hours125,000120,000Change orders1,2002,000Calculate predetermined OH rate. (Round answer to 2 decimal places, e.g. 15.25.)Predetermined OH rate$ /DLH
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