c) please

Elle Inc. makes two types of handbags: standard and custom. The controller has decided to use a plant-wide overhead rate based on direct labour 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 and machine set- up. Presented below is information related to the company's operations. Standard Custom Direct labour costs $50,000 $100,000 Machine hours 500 1,000 Set-up hours 100 400 Total estimated overhead costs are $367,500. The overhead cost allocated to the machining activity cost pool is $189,000, and $178,500 is allocated to the machine set-up activity cost pool. (a) Your answer is correct. Calculate the overhead rate using the traditional (plant-wide) approach. Predetermined overhead rate 245 J% of direct labour cost (b) Your answer is correct. Calculate the overhead rate using the activity-based costing approach. Cost Pool Overhead Rate Machining 126 per machine hour Machine set-up 357 per set-up hour (c) x Your answer is incorrect. Try again. Determine the difference in allocation between the two approaches. (Enter negative answers using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Traditional costing (A) Activity-based costing (B) Difference (A) - (B) X Standard 100000 120000 -20000 x Custom 200000 180000 20000