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Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate % of direct labor cost LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 12.25.) Machining per machine hour Machine setup per setup hour TO TEXT LI LINK TO TEXT VIDEO: SIMILAR EXERCISSE Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. 1,225.) Iraditional costing Standard Custom Activity-based costing Standard Custom Saddle Inc. has two types of handbags: standard and custom. Th plantwide overhead rate based on direct labor costs. The presic and wants to see how the results would differ if this system wer developed: machining and machine setup. Presented below is im operations. Standard Custom Direct labor costs $50,000 $108,000 Machine hours 1,270 1,370 Setup hours 98 420 Total estimated overhead costs are $309,000. Overhead cost allo pool is $196,000, and $113,000 is allocated to the machine setup