Saddle Inc has two types of handbag standard and custom. The controller has decided to use a plantwide overtinant rate based on director costs. The president has heard of activity based costing and wants to see how the results would differ Ir this system were used. Two activity cost pools were developed machining and machine stop. Presented below in information rated to the company's operations Direct labor costs Machine bours Setup hours Standard 550,000 1.500 90 Custom $100.000 1300 360 Totat estimated ovestea constate $312 500 overtread con located to the machining activity cost pool is $210.000 und 51033300 allocated to the machine setup activity cortpool (a) Committee traditional ratioch Round dedine 1225 S 5 b 2 8 19 w e t y 3 s d f 00 h K . C V b - Compute the overhead rate using the traditional (plantwide) approach (Round answer to 2 decimal places, eg 12.25) Predetermined overhead rate 200 of direct labor cost Attempts: 1 of 3 used (b) Compute the overheads to the activity based costing approach Machining $ per machine hour Machine up 5 per setup hour Arteryts oar a user cane Ana 0 c 5 3 8 e C Y D S d f 00 h K c b n m