Adelberg Company has two products: A and B. The annual production and sales of Product A is 2,350 units and of Product B is 1,750 units. The company has traditionally used direct labor- hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.7 direct labor-hours per unit. The total estimated overhead for next period is $106,000. 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 Order Size--with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pools Activity 1 Activity 2 Order Size Total Estimated Overhead Costs $ 32,754 18,656 54,590 $106,000 Product A 1,650 2,350 940 Product B 1,250 850 1, 225 Total 2,900 3,200 2,165 (Note: The Order Size 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: Multiple Choice $5.83 per DLH $25.21 per DLH $48.96 per DLH $11.29 per DLH