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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 $41,000 $107.000 Direct labor costs Machine hours Setup hours 1,120 1,200 100 430 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. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, c.8. 12.25.) Predetermined overhead rate % of direct labor cost $108,000 is allocated to the machine setup activity cost pool. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, eg, 12.25.) Predetermined overhead rate % of direct labor cost eTextbook and Media Compute the overhead rates using the activity based costing approach, (Round answers to 2 decimal places, eg. 12.25.) Machining per machine hour Machine setup $ per setup hour eTextbook and Media Determine the difference in allocation between the two approaches. (Round answers to o decimal places, e.g. 1,225.) Traditional costing Standard Custom Activity-based costing Standard $ Custom $ e Textbook and Media