Oriole 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 1.200 1.200 Setup hours 90 420 Total estimated overhead costs are $294,000. Overhead cost allocated to the machining activity cost pool is $192,000, and $102,000 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, eg. 12.25.) Predetermined overhead rate 196 % of direct labor cost e Textbook and Media Attempts: 2 of 3 used (b) Your Answer Correct Answer (Used) Compute the overhead rates using the activity-based costing approach. Machining $ 80 per machine hour Machine setup $ 200 per setup hour (c) Determine the difference in allocation between the two approaches Traditional costing Standard $ Custom $ Activity-based costing Standard $ Custom $