35. Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,200 units, while 1,500 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,115. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools: Expected activity Estimated overhead Activity cost pool cost Toasters Blenders Total Setup costs $ 8,385 225 batches 420 batches 645 batches Engineering costs $ 70,980 850 engineering hours 840 engineering hours 1,690 engineering hrs 2,750 direct labor 1,125 direct labor 3,875 direct labor Maintenance costs $69,750 hours hours hours Total $149,115 The overhead cost per Blenders using the traditional costing system would be closest to A) $28.86. B) $38.48. C) $99.41. D) $21.55