Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, VIP and Kommander, about which it has provided the following data:

VIPKommanderDirect materials per unit$27.50$62.10Direct labor per unit$15.60$52.00Direct labor-hours per unit0.602.00Annual production40,40015,400

The company's estimated total manufacturing overhead for the year is $2,670,096 and the company's estimated total direct labor-hours for the year is 55,040.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity MeasuresEstimated Overhead CostAssembling products (DLHs)$1,064,000Preparing batches (batches)420,496Product support (product variations)1,185,600Total$2,670,096

Expected ActivityVIPKommanderTotalDLHs24,24030,80055,040Batches1,4981,0662,564Product variations2,6521,2483,900

Unit overhead cost of Product Kommander under the activity-based costing system is closest to:

Multiple Choice

• $222.55.
• $198.63.
• $123.98.
• $74.65.