Chang 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, Plain and Fancy, about which it has provided the following data:

	Plain				Fancy
Direct materials per unit	$	26.10			$	60.90
Direct labor per unit	$	4.50			$	22.50
Direct labor-hours per unit		0.20				1.00
Annual production		35,000				25,000

The company's estimated total manufacturing overhead for the year is $1,232,000 and the company's estimated total direct labor-hours for the year is 32,000.

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
Supporting direct labor (DLHs)		$	480,000
Setting up machines (setups)			316,800
Parts administration (part types)			435,200
Total		$	1,232,000

	Expected Activity
	Plain		Fancy		Total
DLHs	7,000		25,000		32,000
Setups	1,769		871		2,640
Part types	688		400		1,088

The manufacturing overhead that would be applied to a unit of product Fancy under the activity-based costing system is closest to:

$66.69.

$25.58.

$38.50.

$7.70.