Wilkins 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 $113,000 Direct labor costs $58,100 1,370 1,440 Machine hours 400 110 Setup hours Total estimated overhead costs are $297,500. Overhead cost allocated to the machining activity cost pool is $195,600, and $101,900 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.) % of direct labor cost Predetermined overhead rate SHOW ANSWER SHOW SOLUTION Compute the overhead rates using the activity-based costing approach. (Ronad answers to 2 decimal places, e.g. $12.25.) per machine hour Machining Machine setup per setup hour SHOW SOLUTION SHOW ANSWER Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, eg. $1,225.) Iraditional costing Standard S Custom Activity-based costing Standard Custom 8:25 iting #1[ A] ..docx Untitled docu....docx Writing #1[A]....docx