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Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if thi were used. Two activity cost pools were developed: machining and machine setup. Presented below is information relat company's operations. Direct labor costs Machine hours Setup hours Standard $50,000 1,500 90 Custom $100,000 1,200 390 Total estimated overhead costs are $299,400. Overhead cost allocated to the machining activity cost pool is $189,000, and $110,400 is allocated to the machine setup activity cost pool. (a) Your Answer Correct Answer Your answer is correct. Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal pla Predetermined overhead rate 199.60 % of direct labor cost e Textbook and Media Solution Atte (b) Your answer is correct. Compute the overhead rates using the activity-based costing approach. Machining $ 70 per machine hour Machine setup $ 230 per setup hour e Textbook and Media Solution (c) x Your answer is incorrect. Determine the difference in allocation between the two approaches. Traditional costing Standard $ 9980000 Custom $ $ 19960000 Activity-based costing Standard 1890 $ $ Custom 5740 e Textbook and Media Save for Later Attempts: 1 of 2