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Exerci (Video) Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct

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Exerci (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 president has heard of activity-based con 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 Standard Custom Direct labor costs $50,000 100.000 1,500 Setup hours 90 420 Total estimated overhead costs are $301,200. Overhead cost allocated to the machining activity cost pool is $189,000, and $112,200 is allocated to the machine setup activity cost pool your answer is incorrect. Try again. Compute the overhead rate using the traditional plantwide) approach (Round answer to decimal places .. 12.25.) predetermined overhead rate 100 of direct labor cost Your answer is partially correct. Try again. Comote the overhead rates the city based on corch Machining Machine stue per machine hour 200 per setup hour Compute the overhead rates using the activity-based costing approach. Machining 70 per machine hour Machine setup 200 per setup hour LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Determine the difference in allocation between the two approaches. Traditional costing Standard 80,000 Custom 160,000 Activity-based costing Standard 90,000 Custom 150,000 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT INU YA YE

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