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 Standard Custom $50,000 $ 100,000 Direct labor costs Machine hours Setup hours 1,500 1.200 90 420 Total estimated overhead costs are $ 285,900 Overhead cost allocated to the machining activity cost pool is $ 189,000, and $ 96,900 is allocated to the machine setup activity cost pool (a) Your answer is incorrect