CALCULATOR MESSAGE HY INSTRUCTOR FULLSCREEN PRINTER VERSION HACK NEXT Exercise 4-1 (Video) 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 offer if this system were used. The activity cost pools were developed machining and machine setup. Presented below is Information related to the company's operations Standard Custom Direct labor costs $50,000 $100,000 Machine hours 1,200 1,500 Setup hours 90 390 Total estimated overhead costs are $285,000. Overhead cost allocated to the machining activity cost pool is $189,000, and 596,000 is allocated to the machine setup activity pool Your answer is incorrect. Try again. Compute the overhead rate using the traditional plantwice) approach. (Round answer to 2 decimal places, 09.12.25.) Predetermined overhead rate 160 of direct labor cost Your answer is correct. Compute the overhead rates using the activity based costing approach Machining 70 per machine hour SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VEXY VIDEO SERBARE ERINE El Your answer is incorrect. Try again Determine the difference in allocation between the two approaches. Traditional costing Standard 80,000 Custom 160,000 Activity-based costing Standard 90,000 Custom 150,000