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 activitybased 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 co mpa ny's operations. Standard Custom Direct labor costs $55,000 $106,000 Machine hours 1.110 1.150 Setup hours 104 380 Total estimated overhead costs are $302,000. Overhead cost allocated to the machining activity cost pool is $197,000, and $105,000 is allocated to the machine setup activity cost pool. X Your answer is incorrect. Compute the overhead rate using the traditional (plantwide) approach. [Round answer to 2 decimal places, 2.3. 12.25.} Predetermined overhead rate 190 % of direct labor cost eTextbook and Media X Your answer is incorrect. Compute the overhead rates using the activitybased costing approach. {Round answers to 2 decimal places, $312.25.) Machining $ 87.2 per machine hour Machine setup $ 217 per setup hour eTextbook and Media 8 Your answer is incorrect. H Determine the difference in allocation between the two approaches. {Round answers to Odecimal places, e3. 1,225.) Traditional costing Standard $ 102850 Custom $ 198220 : : : : Activity-based costing Standard $ 119762 Custom $