E Ch. 17 Homework Question 1 of 3 > -/3 View Policies Current Attempt in Progress Swifty 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 below is information related to the company's operations Direct labor costs Maching hours Setup hours Standard $50.000 1.200 Custom $100.000 1.200 390 120 Total estimated overhead costs are $299,100 Overhead cost allocated to the machining activity cost pool is $192.000 and S107,100 is allocated to the machine setup activity cost pool Compute the overhead rats using the traditional plantwide approach. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate 96 of direct labor cost e Textbook and Media Compute the overhead rates using the activity-based costing approach. Machining S s per machine hour Machine setup $ per setup hour e Textbook and Media Determine the difference in allocation between the two approaches. Traditional costing Standard S Custom S Activity-based costing - Standard S Custom S e Textbook and Media