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show solutions pls Saddle inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based direct
show solutions pls Saddle inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide 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 w used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the compa operations. Total estimated overhead costs are $296,000. Overhead cost allocated to the machining activity cost pool is $198,000, and $98,000 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach. (Round onswer to 2 decimal places, e.9. 12.25.) otal estimated overhead costs are $296,000. Overhead cost allocated to the machining activity cost pool is $198,000, and $98,000 Illocated 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 Wof direct labor cost 6. Your answer is incorrect. Determine the difference in allocation between the two approaches. (Round answers to o decimal places, e.g. 1,225.)
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