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. Activity Cost Pools and Drivers Activity Standard Custom Direct Labor Costs $50,000 $100,000 Machine Hours 1,500 1,500 Setup Hours 90 420 Total estimated overhead costs are $306,900. Overhead cost allocated to the machining activity cost pool is $210,000, and $96,900 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. Make sure to calculate the rate in percentage first by multiplying it by 100. Then, round the response in percentage to 2 decimal places. Response - Overhead Rate Predetermined Overhead Rate % of Direct Labor CostCompute the overhead rates using the activity-based costing approach. . When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Response - Overhead Rate Machining $ per Machine Hour Machine Setup $ per Setup Hour Determine the difference (in costs) in allocation between the two approaches. . Round answer to the nearest dollar. IF your calculation is $10.01, enter 10. . When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Traditional Costing Standard tA Custom LA Activity-Based Costing Standard Custom