r Question 1 nts up- 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. ord- Standard Custom Direct labor costs Machine hours Setup hours $43,000 1,310 110 $102,000 1,270 380 ok ces am- Total estimated overhead costs are $303,000. Overhead cost allocated to the machining activity cost pool is $ 196,000, and $ 107,000 is allocated to the machine setup activity cost pool. Your answer is incorrect. 90