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 $ $25\mathrm{.}90$ $ $60\mathrm{.}70$

Direct labor per unit $ $4\mathrm{.}30$ $ $21\mathrm{.}50$

Direct labor$-$hours per unit $0\mathrm{.}201\mathrm{.}00$

Annual production $40,00025,000$

The company's estimated total manufacturing overhead for the year is $$1,230,900$ and the company's estimated total direct labor$-$hours for the year is $33,000.$

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$)$ $ $528,000$

Setting up machines $($setups$)257,700$

Parts administration $($part types$)445,200$

Total $ $1,230,900$

Expected Activity

Plain Fancy Total

DLHs $8,00025,00033,000$

Setups $1,6569212,577$

Part types $6803801,060$

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

Multiple Choice

$$7\mathrm{.}46.$

$$37\mathrm{.}30.$

$$65\mathrm{.}80.$

$$26\mathrm{.}07.$