Exercise 17-1 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. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations. Standard Custom Direct labor costs Machine hours Setup hours $43,000 $102,000 1,270 380 1,310 110 Total estimated overhead costs are $303,000. Overhead cost allocated to the machining activity cost pool is $196,000, and $107,000 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 2 decimal places e.g. 12.25.) Predetermined overhead rate % of direct labor cost Your answer is inc ect. T Try again. Compute the over d rates using the activity-based costing approach. (Round answers to 2 decimal place e.g. 12.25.) Machining Machine per machine hour per setup hour an wer is incorrect. Try again. e the difference in allocation between the two approaches. (Round answers to d 225.) tandard Custom Standarod Custom