Exercise 5.17 a-c (Part Level Submission) Elle Inc. makes two types of handbags: standard and custom. The controller has decided to use a plant-wide overhead rate based on direct labour 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 set-up. Presented below is information related to the company's operations Standard Custom Direct labour costs $50,000 100,000 Machine hours Set-up hours 1,000 500 100 400 Total estimated overhead costs are $315,000. The overhead cost allocated to the machining activity cost pool is $178,500, and $136,500 is allocated to the machine set-up activity cost pool. Calculate the overhead rate using the traditional (plant-wide) approach Predetermined overhead rate % of direct labour cost