CALCIATO Exercise 4-1 (Video) Saddle 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 present 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 setup. Presented below is information related to the company's operations Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1,500 1.200 Setup hours 90 420 Total estimated overhead costs are $265,900. Overhead cost allocated to the machining activity pool $18,000, and $96,900 is located to the machine setup activity cost pool Compute the overhead rate using the traditional (plant wide) approach. (Roundwerto del 13.25.) Predetermined overhead rate 52.469 of direct labor cost Compute the overhead rates using the activity-based costing approach Machining $ 70 per machine hour Machine set 188 per hour Determine the difference in allocation between the two approaches Traditional costing Standard Custom Activity based costing e to search ING SIS Determine the difference in allocation between the two approaches. Traditional costing Standard $ Custom $ Activity-based costing Standard Custom $ Click if you would like to Show Work for this question: Open Show Work