Saddle 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 differif this system ware 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 Machine hours Setup hours $50,000 $100,000 1,200 1,200 90 390 Total estimated overhead costs are $292,900. Overhead cost allocated to the machining activity cost poolis $192,000, and $100,000 is a located to the machine setup activity cost pool. Your answer is correct. Compute the overhead rate using the traditional plantwide) approach. (Round answer to 2 decimal places, eg. 12.25.) Predetermined overhead rats 1952 of direct labor cost e Textbook and Media Attempts: 3 of used Your answer is correct. Compute the overhead rates using the activity-based casting approach Machining Machine setup L 90 10 per machine hour par setup hour 2 e Textbook and Media Attempts: 4 of 7 used Determine the difference in allocation between the two approaches. Traditional costins Standard Custom Activity-based costing Standard Custom