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 Custonm Direct labor costs Machine hours Setup hours $59,000 1,350 98 $119,000 1,180 410 Total estimated overhead costs are?297,000. overhead cost allocated to the machining activity cost pool is $200,000, and $97,000 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach. Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate % of direct labor cost Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 12.25.) Machining per machine hour Machine setup per setup hour Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. 1,225.) stin Standard Custom Standard Custom