Compute the overhead rates using the activity-based costing approach.

Machining		$ enter a dollar amount per machine hour	per machine hour
Machine setup		$ enter a dollar amount per setup hour	per setup hour

Traditional costing
Standard		$ enter a dollar amount
Custom		$ enter a dollar amount
Activity-based costing
Standard		$ enter a dollar amount
Custom		$ enter a dollar amount

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 Direct labor costs $50,000 $100,000 Machine hours 1,500 1,200 Setup hours 120 390 Total estimated overhead costs are $296.100. Overhead cost allocated to the machining activity cost pool is $189,000, and $107,100 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate % of direct labor cost