Orlole 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 differIf 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, x Your answer is incorrect. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places de 12.25.) Predetermined overhead rate 196 % of direct labor cost e Textbook and Media X Your answer is incorrect Compute the overhead rates using the activity based costing approach Machining per machine hour Machine setup $ per setup hour X Your answer is incorrect Determine the difference in allocation between the two approaches. Traditional costing Standard Custom Activity-based costing Standard 6 Custom $