1. 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:

   	VIP				Kommander
   Direct materials per unit	$	27.50			$	62.10
   Direct labor per unit	$	15.60			$	52.00
   Direct labor-hours per unit		0.60				2.00
   Annual production		42,400				17,400

   The company's estimated total manufacturing overhead for the year is $3,917,376 and the company's estimated total direct labor-hours for the year is 60,240.

   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 Measures	Estimated Overhead Cost
   Assembling products (DLHs)		$	1,914,000
   Preparing batches (batches)			545,376
   Product support (product variations)			1,458,000
   Total		$	3,917,376

   	Expected Activity
   	VIP		Kommander		Total
   DLHs	25,440		34,800		60,240
   Batches	1,698		1,266		2,964
   Product variations	2,952		1,548		4,500

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

   		$315.25.
   		$175.66.
   		$105.75.
   		$281.41.