Kanaya Co. produces two types of environmentally friendly plastics: Type A and Type B. Manager Kanaya Co. want to use overhead calculations on a single basis based on direct labor costs. Meanwhile, the CEO of Kanaya Co. have heard of the use of activity-based costing i.e. activity-based costing and wanted to see the difference in results obtained when a financing system was implemented. Cost grouping based on activities developed into: machining and machine setup. The following is information related to the company's operations. Direct labor costs Machine hours Setting hours Type A $40,000 500 hours 50 hours Type B $70,000 300 hours 150 hours The estimated overhead cost is $170,000. The overhead costs are allocated to the machining activity of $100,000 and $70,000 is allocated to the machine setup activity. instructions 1. Calculate the overhead rate using the traditional (plant-wide) costing approach, and the overhead assigned to each product type. 2. Calculate the overhead rate using the approximation, and the overhead costs assigned to each product type