Vaughninc, 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 each product's use of cost drivers. Total estimated overhead costs are $313,500. Overhead cost allocated to the machining activity cost pool is $210,000, and $103,500 is allocated to the machine setup activity cost pool. Determine the difference in allocation between the two approaches