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. Direct labor costs Machine hours Setup hours Sta ndard $50,000 1,200 Custom $100,000 1,200 Total estimated overhead costs are $304,200. Overhead cost allocated to the machining activity cost pool is $192,000, and $112,200 is allocated to the machine setup activity cost pool. Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal ples, eg 12.25.) Predetermined overhead rate Your answer is correct. 202B % of direct labor cost Attempts; 1 of 1 used Compute the overhead rates using the activity-based costing approach. Machining Machine setup BO 220 per machine hour per setup hour 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. Direct labor costs Machine hours Setup hours Sta ndard $50,000 1,200 Custom $100,000 1,200 Total estimated overhead costs are $304,200. Overhead cost allocated to the machining activity cost pool is $192,000, and $112,200 is allocated to the machine setup activity cost pool. Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal ples, eg 12.25.) Predetermined overhead rate Your answer is correct. 202B % of direct labor cost Attempts; 1 of 1 used Compute the overhead rates using the activity-based costing approach. Machining Machine setup BO 220 per machine hour per setup hour