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 $100,000 Machine hours 1,500 1,500 Setup hours 90 420 re Sdle 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 She the machine vetup activity cost pool. achi Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, ag. 12.25.) Predetermined overhead rate of direct labor cost Direct Compute the overhead rates using the activity-based costing approach Machi Setup Machining per machine hour Machine up per setup hour Total activ Determine the difference in a location between the two approaches Traditional casting Com Standard Hoe Activity based on