geniti/main.uni Tube Maps NP Return to Blackboard Weygandt, Managerial Accounting, se Helal System Announcements NEET CALCULATOR Exercise 4-1 (Video) 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. Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1,500 1,200 Setup hours 90 360 Total estimated overhead costs are $297,000. Overhead cost allocated to the machining activity cost pool is $189,000, and $108,000 is allocated to the machine setup activity cost pool Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, ag. 12.25.) Predetermined overhead rate 20% of direct labor cost Compute the overhead rates using the activity based costing approach. Machining $ 1.25 per machine hour Machine setup 0.25 per setup hour Determine the difference in allocation between the two approaches. Traditional costing Standard Custom $ SAI Compute the overhead rates using the activity-based costing approach. Machining $ 1.25 per machine hour Machine setup $ 0.25 per setup hour udy 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 Question Attempt of used 80 888 8 N 7 2 6 5 3 w