he hare to rearch Standard Custom Direct labor costs $40,000 $95,000 Machine hours 1,100 1,100 Setup hours 95 370 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. Total estimated overhead costs are $295,000. Overhead cost allocated to the machining activity cost pool is $195,000, and $100,000 is allocated to the machine setup activity cost pool. D' D O Ps 77F ^