Exercise 17-1 (Part Level Submission) 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 this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations Direct labor costs Machine hours Setup hours Standard $41,000 1,120 Custom $107,000 1.200 Total estimated overhead costs are $304,000. Overhead cost allocated to the machining activity on 19.000, and 10.000 cated to the machine sta activity cost pool . 12.25.) Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places Predetermined overhead rate of direct labor cost Click if you would like to show Work for this question Open Show Work