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: \begin{tabular}{lrr} & \multicolumn{1}{c}{ Plain } & \multicolumn{1}{c}{ Fancy } \\ Direct materials per unit & $26.40 & $61.20 \\ Direct labor per unit & $4.80 & $24.00 \\ Direct labor-hours per unit & 0.20 & 1.00 \\ Annual production & 35,000 & 25,000 \end{tabular} The company's estimated total manufacturing overhead for the year is $1,040,000 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: \begin{tabular}{lr} & \begin{tabular}{c} Estimated \\ Activities and Activity Measures \end{tabular} \\ Supporting direct labor (DLHs) & $384,000 \\ Setting up machines (setups) & 249,200 \\ Parts administration (part types) & 406,800 \\ \hline Total & $1,040,000 \\ \hline \end{tabular} \begin{tabular}{lrrr} & \multicolumn{3}{c}{ Expected Activity } \\ \cline { 2 - 4 } & Plain & Fancy & \multicolumn{1}{c}{ Total } \\ DLHs & 7,000 & 25,000 & 32,000 \\ Setups & 1,555 & 937 & 2,492 \\ Part types & 700 & 430 & 1,130 \end{tabular} The manufacturing overhead that would be applied to a unit of Plain under the company's traditional costing system is closest to: Multiple Choice $6.50. $2.40. $13.37. $19.87