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 and machine setup. Presented below is information related to the company's operations. Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1,500 1,500 Setup hours 90 360 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. Compute the overhead rate using the traditional iplantwide} approach. [Round can-mar to 2 decimalplaces, 8.3. 12.25..lI Predetermined overhead rate ' 95 of direct labor cost Compute the overhead rates using the activity-based costing approach. Machining per machine hour Machine setup $ per setup hour eTextbook and Media Determine the difference in allocation between the two approaches. Traditional costing Standard Custom $ Activity-based costing Standard Custom $