Question 4 of 13 View Policies Show Attempt History Current Attempt in Progress 0.67/1 E 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. Standard Custom Direct labor costs $50,000 $100,000 Machine hours Setup hours 1,500 90 1,500 360 Total estimated overhead costs are $313,500. Overhead cost allocated to the machining activity cost pool is $210,000, and $103,500 is allocated to the machine setup activity cost pool.