Sunland 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 $3,000,$ and the total estimated number of setups is $450.$ Presented below is information related to the

company's operations.

Total estimated overhead costs are $$309,000.$ Overhead cost allocated to the machining activity cost pool is $$210,000,$ and

$$99,000$ is allocated to the machine setup activity cost pool.

$($a$)$

Compute the overhead rate using the traditional $($plantwide$)$ approach information related to each product's use of cost

drivers. $($Round answer to $0$ decimal places, e$.$g$.12.)$

Predetermined overhead rate

$\%$ of direct labor cost