31.

Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production 2,800 1,300 Direct Labor- Hours Per Unit 6.8 3.8 Total Direct Labor- Hours 19,040 4,940 23,980 Product 01 Product D5 Total direct labor-hours The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Product testing Order size Activity Measures DLHS tests MHS Estimated Overhead Cost $170,482 66,909 222,825 $ 460,216 Product 01 Product D5 19,040 4,940 1,300 1,200 5,600 5,500 Total 23,980 2,500 11,100 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: Multiple Choice $26.76 per DLH $20.07 per DLH $19.19 per DLH $7.11 per DLH