Saddle Inc. has two types of handbags: standard and custom. The controller has decided too 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 1,200 1,200 Setup hours 90 390 Total estimated overhead costs are $297,600. Overhead cost allocated to the machining activity cost pool is $192,000, and $105,600 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate % of direct labor cost us TO TEXT LINK TO TEXT vmeo sMILAR EXERCESE Compute the overhead rates using the activity-based costing approach Machining per machine hour Machine setup per setup hour INK TO TEKT LINK TO TEKY vEO SIMLAR EXERCES Determine the difference in allocation between the two approaches. Traditional costing Standard Custom Activity-based costing Standard Custom