gnment CALCULATOR PRINTER VERSION BACK NEXT Exercise 17-01 (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 opsting 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 1,500 Setup hours 90 Total estimated overhead costs are $306,900. Overhead cost allocated to the machining activity cost pool is $210,000, and $96,900 is allocated to the machine setup activity cost pool. 420 (a) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e... 12.25.) LINK TO VIDEO Attempts: 1 of 3 used Determine the difference in allocation between the two approaches. Traditional costing Standard Custom Activity-based costing Standard Custom Click if you would like to Show Work for this question: Open Show Work LINK TO VIDEO LINK TO TEXT