CALERATOR PRINTS 4 BACK NEXT Exercise 16-1 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 president has heard of activity-based costing and wants to see how the results would differ if this system were used. The activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations Direct labor costs Machine hours Setup hours Standard $42,000 1.200 96 Custom $101.000 1,270 400 Total estimated overhead costs are $300,000. Overhead cost allocated to the machining activity cost pool is $200,000, and $100,000 is allocated to the machine setup activity cost pool Compute the overhead rate using the traditional plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate 2.069 of direct labor cost LINK TO TEKT LINK TO TEXT VIDEO SIMILAR EXERCISE Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, eg. 12.25.) Machining per machine hour $ Machine setup $ per setup hour LINK TO TEXT VIDEO SIMILAR EXERCISE Determine the difference in allocation between the two approaches. (Round answer to o decimal places, e.g. 1,225.) Traditional costing Standard $ Custoon Predetermined overhead rate LLIU PRINTER VERSION 2.069 % of direct labor cost LINK TO TEXT LINK TO TEXT VIDEO, STHILAR EXERCISE Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 12.25.) Machining $ per machine hour Machine setup $ per setup hour LINK TO TEXT VIDEO: SIMILAR EXERCISE Determine the difference in allocation between the two approaches. (Round answers to decimal places, e.g. 1,225.) Traditional costing Standard $ Custom Activity-based costing Standard Custom LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Question Attempts: 0 of 3 used SAVE FOR LATER SUE 80