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, Standar Custonm Direct labor costs Machine hours Setup hours $53,800 1,440 98 $117,000 1,300 370 Total estimated overhead costs are $298,100. Overhead cost allocated to the machining activity cost pool is $195,700, and $102,400 is allocated to the machine setup activity cost pool Your answer is incorrect. Try again Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, eg, 12.25%.) Predetermined overhead rate 17511 % of direct labor cost Your answer is correct. Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. $12.25.) Machining Machine setup 71.42 per machine hour 218.80 per setup hour