Sheridan 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 (machine hours) and machine setup (number of setups). The total estimated machine hours is 2,400 , and the total estimated number of setups is 510 . Presented below is information related to the company's operations. Total estimated overhead costs are $306,000. Overhead cost allocated to the machining activity cost pool is $204,000, and $102,000 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 faces, e-g. 12.25. ) Determine the difference in allocation between the two approaches. (Roumd answers to 0 decimal places, e.g. 1, 225.)