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 or activity-based costing and wants to see how the results would differ if this system were used. Two activity cost peols were developed machining and machine setup. Presented below is Information related to the company's operations Custom Direct labor costs Machine hours Standard $41,000 1,120 100 $107.000 1.200 Setup hours Total estimated overhead costs are $304,000. Overhead cost allocated to the machining activity cost pool is $196,000, and $108,000 is allocated to the machine setup activity cost pool Your answer is correct Compute the overhead rate using the traditional (plantwice) approach (Round answer to 2 decimal places, e.. 12.25.) Predetermined overhead rate 205.41 or direct labor cost Click if you would like to show Work for this questioni Con Show Work LINE TO TEXT LINK TO TEXT Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, .9. 12.25.) 34.45 per machine hour 203.77 per setup hour Machine setup Click if you would like to show Work for this question Open Show Work LINK TO TEXT LINK TO TEET Attempts: 1 of 3 used (c) Determine the difference in allocation between the two approaches (Round answers to decimal places, e.g. 1,225.) Traditional costing Standard Custom Activity-based costing Determine the difference in allocation between the two approaches. (Round answers to decimal places, e.g. 1,225.) Traditional costing Standard Custom Activity-based costing Standard Custom Click if you would like to Show Work for this question: On Show Work LT TO TEXT LINK TO TEXT VIDEO: STHILAR EXERCISE Attempts of used AVE FOUTE BAIT