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Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, N06D and M09K, about which it has provided the following data:

	N06D	M09K
Direct materials per unit	$ 17.70	$ 62.50
Direct labor per unit	$ 5.00	$ 16.00
Direct labor-hours per unit	0.50	1.60
Annual production (units)	40,000	15,000

The company's estimated total manufacturing overhead for the year is $2,532,200 and the company's estimated total direct labor-hours for the year is 44,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures	Estimated Overhead Cost
Supporting direct labor (direct labor-hours)	$ 880,000
Setting up machines (setups)	376,200
Parts administration (part types)	1,276,000
Total	$ 2,532,200

	Expected Activity
	N06D	M09K	Total
Direct labor-hours	20,000	24,000	44,000
Setups	1,408	1,100	2,508
Part types	1,540	1,012	2,552

The manufacturing overhead that would be applied to a unit of product N06D under the company's traditional costing system is closest to:

Multiple Choice

• $63.31

• $10.00

• $28.78

• $34.53

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