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. Total estimated overhead costs are $240.000. Overhead cost allocated to the machining activity cost pool is $140,000 and $100,000 is allocated to the machine setup activity cost pool. Instructions (a) Compute the overhead rate wing the traditional (plantwide) approach. (h) Compute the overhead rates using the activity-based costing approach. (e) Determine the difference in allocation between the two approaches. Variable costs are costs that: (a)vary in total directly and proportionately with changes in the activity level. (b)remain the same per unit m every activity level (e) Neither of the above. (d)Both (a) and (b) above. Mixed costs consist of a: (a) variable-cost element and a fixed-cost element. (b) fixed-cost clement and a controllable-cost element. (c) relevant-cost element and a controllable-cost element. (d) variable-cost element and a relevant-cost element