Question 21 Ele Inc. makes two types of handbags: standard and custom. The controller has decided to use a plant wide overhead rate based on direct labour costs. The president has heard of activity based costing and wants to see how the results would differ if this system were used Iwa activity cost pools were developed: machining and machine sct up. Presented below is information related to the company's operations Direct labour costs Machine hours Set-up hours $50,000 500 100 100,000 1,000 400 Total estimated overhead costs are $270,000. The overhead cost allocated to the machining activity cost pool is 168,000, and S102,000 is allocated to the machine set-up activity cost pool. Your answer has been saved and sent for grading. See Gradebook for score details. Calculate the overhead rate using the traditional (plant wida) approach. of direct labor cost VIDEOI STMTLAR EXERCISE Attempts: 1 of 1 used 1 Your answer has been saved and sent for grading. See Gradebook for score details. Calculate the overhead rate using the activity-based costing approach. Cost Pool Machining Overhead Rate 112 per machine hour Machine ser-p 204 per set-up hour Determine the difference in allocation between the two approaches. Enter negative answers using enter a negatives n preced ing the numbere 2945 or parentheses eg Traditional costing (A) Activity-based costing (B) Difference (A) - (B) Standard Custom