er 4-Week 5 Question 3 of 4 HII 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. Two 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 $50,000 1.200 90 Custom $100.000 1.200 420 Total estimated overhead costs are $299,100 Overhead cost allocated to the machining activity cost pool is 192.000, and $107.100 is allocated to the machine setup activity cost pool Compute the overhead rate using the traditional plantwide) approach. (Round answer to 2 decimal places, es 12.25) Predetermined overhead rate of direct labor cost Compute the overhead rates in the activity based costing proach Machining por machine how pe setup hour 20 3 4 5 6 . 00 9 W E R T Y U 0 P S D F G G H J K X V B N M Chapter 4 - Week 5 Question 3 of 4 Compute the overhead rates using the activity-based costing approach. Machining $ per machine hour Machine setup $ per setup hour Determine the difference in allocation between the two approaches, Traditional costing Standard $ Custom $ Activity-based costing Standard $ Custom $ Sofortite Attempts: 0 of 3 used Submit A go 13 De $ 2 3 4 5 6 7 8 9. W E R T Y U O S D