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Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate 204.6 % of direct labor cost Attempts: 1 of 7 used (b) Your answer is correct. Compute the overhead rates using the activity-based costing approach. Machining $ 70 per machine hour Machine setup $ 190 per setup hour e Textbook and Media Attempts: 2 of 7 used (c) Your answer is partially correct. Determine the difference in allocation between the two approaches. Traditional costing Standard $ 102300 Custom $ 204600 Activity-based costing Standard $ 123414 Custom $ 190932 e Textbook and Media Save for Later 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 1,500 Setup hours 90 420 Total estimated overhead costs are $ 306,900. Overhead cost allocated to the machining activity cost pool is $ 210,000, and $ 96,900 is allocated to the machine setup activity cost pool. (a) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate 204.6 % of direct labor cost Attempts: 1 of 7 used