Question 31 of31 I \\ U.) 0 ll on direct labour costs. The president has heard of activitybased costing and were used. Two activib/ cost pools were developed: machining ( wants to see how the results would differ if this system estimated machine hours is 1,500, and the total estimated num machine hours) and machine set-up (number of set- ups). The total ber of setups is 500. Presented below is information related to the company's operations. Standard Custom Direct labour costs $50,000 $100,000 Machine hours 500 1,000 Set-up hours 100 400 Total estimated overhead costs are $225,000. The overhead cost allocated to the machinin $66,000.is allocated to the machine set-up activity (3) Calculate the overhead rate using the traditional (plant~wide) V approach. A b Predetermined overhead rate % of direct labour cost