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 1,500 90 Custom $100,000 1.200 420 Total estimated overhead costs are $291.000. Overhead cost allocated to the machining activity cost pool is $189,000, and $102,000 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, e.s. 12.25.) Predetermined overhead rate 1.94 % of direct labor cost e Textbook and Media Your answer is incorrect. Determine the difference in allocation between the two approaches. Traditional costing Standard Custom Activity-based costing Standard Custom $ e Textbook and Media