Exercise 4-1 (Video) Saddle Inc. has two types of handbags: standard and custom. The costing and wants to see how the results would differ if this company's operations controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the Standard Custom Direct labor costs Machine hours Setup hours $50,000 100,000 1,200 420 1,200 90 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, e9. 12.25.) Predetermined overhead rate % of direct labor cost Compute the overhead rates using the activity-based costing approach. Machining per machine hour Machine setup per setup hour Compute the overhead rates using the activity-based costing approach Machining Machine setup per machine hour per setup hour LINK TO TEXT LINK TO TEXT VIDEO SIMILAR EXERCISE Determine the difference in allocation between the two approaches Traditional costing Standard Custom Activity-based costing Standard Custom Click If you would like to Show Work for this question: Open Show.Work LINK TO TEXYLN