Question 1 0.83/1 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. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations S Sup- Standard Custom Direct labor costs $60,000 $99,000 1,310 1,190 108 400 Machine hours Setup hours Total estimated overhead costs are $306,000. Overhead cost allocated to the machining activity cost pool is $195,000, and $111000 is allocated to the machine setup activity cost pool Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach (Round answer to 2 decimal places, es. 12.25.) Predetermined overhead rate 19245 | % of direct labor cost eTextbook and Media