Need help with part c please.

Exercise 4-1 (Video) (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 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 Direct labor costs $50,000 $100,000 Machine hours 1,000 1,000 Setup hours 100 400 Total estimated overhead costs are $240,000. Overhead cost allocated to the machining activity cost pool is $140,000, and $100,000 is allocated to the machine setup activity cost pool. (a) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.) Predetermined overhead rate 160 % of direct labor cost Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Attempts: 4 of 15 used (b) Your answer is correct. Compute the overhead rates using the activity-based costing approach. Machining 70 per machine hour Machining 700 per machine hour Machine setup 200 per setup hour Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Attempts: 1 of 15 used (c) x Your answer is incorrect. Try again. Determine the difference allocation between the two approaches. Traditional costing Standard 70000 x Custom 70000 Activity-based costing Standard Custom Click if you would like to Show Work for this question: Open Show Work