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	$	25.50			$	60.30
Direct labor per unit	$	6.00			$	30.00
Direct labor-hours per unit		0.20				1.00
Annual production		50,000				20,000

The company's estimated total manufacturing overhead for the year is $1,050,000 and the company's estimated total direct labor-hours for the year is 30,000.

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)		$	450,000
Setting up machines (setups)			248,600
Parts administration (part types)			351,400
Total		$	1,050,000

	Expected Activity
	Plain		Fancy		Total
DLHs	10,000		20,000		30,000
Setups	1,517		969		2,486
Part types	664		340		1,004

The manufacturing overhead that would be applied to a unit of Plain under the company's traditional costing system is closest to:

$12.00.

$7.00.

$3.00.

$19.00.