Exercise 18-1 Wilkins 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 $49,500 $103,000 1,160 1,400 Machine hours 100 Setup hours 440 Total estimated overhead costs are $305,300. Overhead cost allocated to the machining activity cost pool is $199,100, and $106,200 is allocated to the machine setup activity cost pool. M Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%) Predetermined overhead rate 200.2 of direct labor cost