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 $299,100. Overhead cost allocated to the machining activity cost pool is $192,000, and $107,100 is allocated to the machine setup activity cost pool. (a) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate % of direct labor cost Your answer is correct. Compute the overhead rates using the activity-based costing approach. Machining Machine setup per machine hour persetuphour eTextbook and Media c) Determine the difference in allocation between the two approaches. Determine the difference in allocation between the two approaches