Adelberg Corporation makes two products: Product A and Product B$.$ Annual production and sales are $500$ units of Product A and $1,000$ 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 $0\mathrm{.}4$ direct labor$-$hours per unit and Product B requires $0\mathrm{.}2$ direct labor$-$hours per unit. The total estimated overhead for next period is $$68,756.$

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:

Activity Cost Pool Estimated Overhead Costs Expected Activity

Product A Product B Total

Activity $1$ $ $31,0311,0003001,300$

Activity $222,2491,6003001,900$

General Factory $15,476200200400$

Total $ $68,756$

$($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:

Multiple Choice

$$11\mathrm{.}71$

$$38\mathrm{.}69$

$$171\mathrm{.}89$

$$23\mathrm{.}87$