Question: Please help me with #1 Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate

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. Total estimated overhead costs are $294,600. Overhead cost allocated to the machining activity cost pool is $189,000, and 5105,600 is allocated to the machine setup activity cost pool. (a) Compute the civerhead rate using the traditional (plantwide) approsch (Round anwer to 2 decimal places, 5.5. 12.25) Predetermined overhead rate X of direct labor cost
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