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 1500 120 Custom $100,000 1,200 390 Total estimated overhead costs are $296,100. Overhead cost allocated to the machining activity cost pool is $189,000, and $107.100 is allocated to the machine setup activity cost pool (a) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach (Round answer to 2 decimal places eg. 1225.) Predetermined overhead rate 197.40 % of direct labor cost e Textbook and Media Attempts: 1 of 4 used Using multiple attempts will impact your score. 25% score reduction after attempt 3 (b) Compute the overhead rates using the activity-based costing approach Machining S per machine hour Machine setup $ per setup hour