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: Fancy $ 24.90 59.70 $5.40 2700 1.00 55,000 35,000 Plain Direct materials per unit Direct labor per unlt Direct labor-hours per unit Annual production 0.20 The company's estimated total manufacturing overhead for the year is $1,255,800 and the company's estimated total direct labor-hours for the year is 46,000 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 Estimated Overhead Cost Activities and Activity Measures Supporting direct labor (DLHs) Setting up machines (setups) Parts administration (part types) Total 598,000 271,400 386,400 $1,255,800 Expected Plain Fancy Total DLHs Setups Part types 11,000 1,734 640 35,000 980 280 46,000 2,714 920 The manufacturing overhead that would be applied to a unit of product Fancy under the activity-based costing system is closest to: $73.23 $27.30. O $5.46 O $1916