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, Direct labor costs Machine hours Setup hours Standard $50,000 1.200 90 Custom $100,000 1,500 Total estimated overhead coats are $285,000. Overhead cost allocated to the machining activity cost pool is $189.000, and 196,000 is allocated to the machine setup activity cost pool Retur: S sunting, se Help System Announcements X Your answer is incorrect. Try again. Compute the overhead rates using the activity-based costing approach. Machining xww 70 per machine hour X Machine setup 200 per setup hour Your answer is incorrect. Try again. Determine the difference in allocation between the two approaches. Traditional costing X Standard ........... 95000005 Custom 19000000 Activity-based costing Standard 53437.50 Custom 231562.5