NEXT CALCULATOR PRINTER VERSION BACK Saddle Inc. has two types of handbags: standard and custom. The controler 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 550,000 $100,000 Machine hours 1,200 1,200 Setup hours 120 390 Total estimated overhead costs are $304,200 Overhead cost allocated to the machining activity cost pool is $192,000, and $112,200 is allocated to the machine setup activity cost pool Compute the overhead rate using the traditional plantwide) approach (Hound answer to 2 decimal places, eg. 12.25.) Predetermined overhead rate of direct laber com Compute the overhead rotes using the activity-based costing approach Machining $ per machine how Machine setup persetup hour Determine the difference in a location between the two approaches Traditional costing Standard Custom Activity-based costing Standard Custom