I need help with E4-1B, all the data is in the exerci

Exercises E4-1B Celia 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. Iivo activity cost pools were developed: machining and machine setup. Pre- sented below is information related to the company's operations. Direct labor costs Machine hours Setup hours Standard $60,000 1,500 100 Custom $120,000 1 ,500 500 Total estimated overhead costs are $342,000. Overhead cost allocated to the machining activity cost pool is $222,000, and $120,000 is allocated to the machine setup activity cost pool. (a) (b) (c) Compute the overhead rate using the traditional (plantwide) approach. Compute the overhead rates using the activity-based costing approach. Determine the difference in allocation between the two approaches.