Exero Exercises E4-1B Celia Inc. has two types of handbags: standard and istom. The controller has Assur o decided to use a plantwide overhead rate based on direct labor costs. The president has tradition heard of activity-based costing and wants to see how the results would differ if this system (10 1,40 were used. Two activity cost pools were developed: machining and machine setup. Pre sented below is information related to the company's operations. Standard Custom Direct labor costs$60,000 $120,000 1,500 500 Machine hours Setup houns 1,500 100 Total estimated overhead costs are $342,000. Overhead cost allocated to the machining activity cost pool is $222,000, and $120,000 is allocated to the machine setup activity cost pool. Instructions (a) Compute the overhead rate using the traditional (plantwide) approach. (b) Compute the overhead rates using the activity based costing approach. (c) Determine the dilference in allocation between the two approaches. E4-2B Tiger Inc. has conducted the following analysis related to its product lines, using Explais a traditional costing system (volume-based) and an activity-based costing system. Both tradtio the traditional and the aclivity-based costing systems include direct materials and direct costimg