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 $50,000 Custom $100,000 Direct labor costs Machine hours Setup hours 1,200 1,500 120 360 Total estimated overhead costs are $294,600. Overhead cost allocated to the machining activity cost pool is $189,000, and $105,600 is allocated to the machine setup activity cost pool. (a) Your answer has been saved. See score details after the due date. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate 196.40 % of direct labor cost Attempts: 1 of 1 used (b) Compute the overhead rates using the activity-based costing approach. Machining $ per machine hour Machine setup $ per setup hour Save for Later Attempts: 0 of 1 used Submit