Addy Company makes two products: Product A and Product B. Annual production and sales are 2,400 units of Product A and 2,000 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.30 direct labor hours per unit and Product B requires 0.60 direct labor hours per unit. The total estimated overhead for next period is $163,208.

The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:

			Expected Activity
Activity Cost Pool		Estimated Overhead Costs		Product A		Product B		Total
Activity 1		$57,400		2,500		1,000		3,500
Activity 2		26,320		2,400		400		2,800
General Factory		79,488		720		1,200		1,920
Total		$163,208

(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor hours.)

The predetermined overhead rate under the traditional costing system is closest to: (Round your final answer to 2 decimal places.)