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 $50,000 1,200 $100,000 1,200 Machine hours Setup hours 120 390 Total estimated overhead costs are $299,100. Overhead cost allocated to the machining activity cost pool is $192,000, and $107,100 is allocated to the machine setup activity cost pool. x Your answer is incorrect. Try again. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate 299100|| % of direct labor cost Compute the overhead rates using the activity-based costing approach. X Machining 19200 || per machine hour $ Machine setup 107100|| per setup hour LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Determine the difference in allocation between the two approaches. Traditional costing Standard 99700 $ Custom 199400 $ Activity-based costing Standard 192000 Custom 107100