Dumbledore Corporation has two products: A and B. The annual production and sales of Product A is 2,700 units and of Product B is 2,100 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is $109,875. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:

Activities	Estimated Overhead cost		Expected Activity
			Product A	Product B	Total
Activity 1	$33,951		2,000	1,600	3,600
Activity 2	19,338		2,700	1,200	3,900
General Factory	56,586		1,350	1,680	3,030
Total	$109,875

The predetermined overhead rate under the traditional costing system is closest to:

$36.26

$18.68

$4.96

$9.43