Saddle Inc. has two types of handbags standard and custom. The controller has decided to use a plantwide overheat 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 Direct labor costs Machine hours Setup hours Standard $50,000 1.500 90 Custom $100,000 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 Compute the overhead rate using the traditional plantwide approach Cound answer to decimal po 12.95 Promined overrate of director cost 9 S 3 & 2 5 6 8 9 e t Y O 5 d g h j K K C V b n