The following cost information is available for Senkowski, Ltd.: Direct materials are S15 per unit for luxury handbags and $11 per unit for deluxe handbags. There were 12, 500 direct labor hours, each of which was charged to inventory at $18 per hour. Required: Management is trying to decide between using the traditional allocation method based on direct labor hours and using activity-based costing. Calculate the overhead rates for each method. One particular batch of 40 luxury handbags had the following specifications: Calculate the overhead to be allocated to the bags under the traditional and activity-based costing techniques. allocates overhead to products on the basis of the activities that cause overhead costs to be incurred. results in more accurate product costing. The following cost information is available for Senkowski, Ltd.: Direct materials are S15 per unit for luxury handbags and $11 per unit for deluxe handbags. There were 12, 500 direct labor hours, each of which was charged to inventory at $18 per hour. Required: Management is trying to decide between using the traditional allocation method based on direct labor hours and using activity-based costing. Calculate the overhead rates for each method. One particular batch of 40 luxury handbags had the following specifications: Calculate the overhead to be allocated to the bags under the traditional and activity-based costing techniques. allocates overhead to products on the basis of the activities that cause overhead costs to be incurred. results in more accurate product costing