Addy Company makes two products: Product A and Product B. Annual production and sales are 2,500 units of Product A and 2,100 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 0.20 direct labor hours per unit and Product B requires 0.70 direct labor hours per unit. The total estimated overhead for next period is $169,720. 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 $60,225 2,600 1,050 3,650 Activity 2 27,740 2,500 420 2,920 General Factory 81,755 750 1,260 2,010 Total $169,720 (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.)