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 $41,000 $107,000 Machine hours 1.120 1.200 Setup hours 100 430 Total estimated overhead costs are $304,000. Overhead cost allocated to the machining activity cost pool is $196,000, and $108.000 is allocated to the machine setup activity cost pool Compute the overhead rate using the traditional (plantwide) approach (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate % of direct labor cost eTextbook and Media Compute the overhead rates using the activity-based costing approach (Round answers to 2 decimal places, e.g. 12.25.) Machining $ per machine hour Machine setup $ per setup hour eTextbook and Media Determine the difference in allocation between the two approaches (Round answers to 0 decimal places, c.s. 1,225.) Traditional costing Standard $ Custom Activity-based costing Standard Custom