Question 1 of 3 >> 0.67/1 View Policies Show Attempt History Current Attempt in Progress Bonita Inc. has two types of handbags standard and custom. The controler has decided to use we were to direct labor costs. The president has heard of activity based costing and wants to see how the sults would differ used. Two activity cost pools were developed machining and machine setup Presented belowiem operations Standard Custom Direct labor cost $50.000 $100.000 Machine hours $200 Setup for 130 Total town 300.000 em 112 200 te that to - Srup activity cost pool Ringtone (a) Your answer is correct Comoute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal share 12.35) Predetermined overhead rate 2020 of direct labor cost e Textbook and Media c Oo 0.67/1 (b) Your answer is correct. Compute the overhead rates using the activity based costing approach Machining $ 80 per machine hour Machine setup $ 20 persetup hour e Textbook and Media Attent (c) 0.67/1 (c) Determine the difference in allocation between the two appro roaches Traditional.costing Standard $ Custom 5 Activity-based costing 5 Standard 5 Custom e Textbook and Media