Wildhorse Inc. makes two types of handbags: standard and custom. The controller has decided to use a plant$-$wide overhead rate

based on direct labour 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 set$-$up $($number of set$-$ ups$).$ The

total estimated machine hours is $1,500,$ and the total estimated number of setups is $500.$ Presented below is information related to

the company's operations.

Total estimated overhead costs are $$337,500.$ The overhead cost allocated to the machining activity cost pool is $$183,000,$ and

$$154,500$ is allocated to the machine set$-$up activity cost pool.

$($c$)$

Determine the difference in allocation between the two approaches by subtracting the activity$-$based costing results from the

traditional costing results.