Sastwo types of standard and clinton. The controller hos decided to use spotwide overhead rate based direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were ned. Two activity cost pools were developed machining and machine setup. Presented below information related to the company operations Direct labor costs Machine hours Setup hours Standard $50.000 1.500 Custom $100.000 1.500 360 Total estimated Overhead costs are 5313500 Overhead cost allocated to the machining activity cost poolis $210.000 $103.500 is located to the machine stup activity cost pool Come overhead raditionale sprach round to decimo 12.25 6 7 B 9 W e t y S d 8 h K Z c b n m Compute the overhead rate using the traditional plantwidel approach. (Round answer to 2 decimal places, es 1225) Predetermined overhead rate % of direct labor cost 209 Attempts: 1 of 3 used (b) Your answer is correct Compute the overhead rates using the activity-based costing approach Machining $ 70 per machine hour Machines $ per setup hour OS 6. 5 8. 0 W e t Y u p S g. K Determine the difference in a location between the two approaches Traditional costing Standard $ Custom $ Activity-based costing Standard $ Custom $ Sor Attempt of 3 used Sant A D 3 5 6 7 8. 9 0 W t Y . u 0 s d g h 1 K