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. Custom Direct labor costs Standard $50,000 1,200 90 $100,000 1,200 Machine hours Setup hours 390 Total estimated overhead costs are $292,800. Overhead cost allocated to the machining activity cost pool is $192,000, and $100,800 is allocated to the machine setup activity cost pool. Compute the overhead rates using the activity-based costing approach. Machining $ per machine hour Machine setup $ per setup hour