Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. Cost Driver Budgeted Costs Machine setup, Indirect materials Inspections Tests Insurance, plant Engineering design Depreciation, machinery Machine setup, indirect labor Property taxes oil, heating Electricity, plant lighting Engineering prototypes Depreciation, plant Electricity, machinery Machine maintenance wages 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. Tuo 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 Standard $50,000 1,200 120 Custom $100,000 1,200 390 Total estimated overhead costs are $304,200. Overhead cost allocated to the machining activity cost pool is $199,000, and $112,200 is allocated to the machine setup activity cost pool Compute the overhead rate using the traditional (plantwide) approach. (Nound answer i 2 decimal places, c.g. 12.25.) Predetermined overhead race of direct labor cout Compute the overhead rates using the activity-based costing approach Machining per machine hour per setup hour Machine setup Determine the difference in a location between the two approaches Traditional costing Standard Custom Activity-based costing Standard Custom