Cullumber 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. Two activity cost pools were developed: machining and machine setup. Presented here is information related to the company's operations Standard Custom Direct labor costs $50,000 $100,000 Machine hours t Setup hours 1,000 1,000 100 400 Total estimated overhead costs are $195,000. Overhead cost allocated to the machining activity cost pool is $144,000, and $51,000 is allocated to the machine setup activity cost pool. Compute the overhead rates using the activity-based costing approach. Activity Cost Pool Machining $ Overhead Rate per machine hour Machine setup per setup hour