View Policies Show Attempt History Current Attempt in Progress 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 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 Direct labor costs Machine hours Setup hours Standard $50,000 1,500 90 Custom $100,000 1,200 390 Total estimated overhead costs are $294,600. Overhead cost allocated to the machining activity cost pool is $189.000, and $105,600 is allocated to the machine setup activity cost pool * Your answer is incorrect. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) 19.6 of direct labor cost Predetermined overhead rate e Textbook and Media