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 $100,000 $50,000 Direct labor costs Machine hours Setup hours 1.200 1.200 90 390 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. (a) Your answer is incorrect. Compute the overhead rate using the traditional (plantwide) approach, (Round answer to 2 decimal places, c.8. 12. 25.) Predetermined overhead rate % of direct labor cost eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be avallable when you complete the part above