Dunagin, Inc., manufactures and sells two products: Product U2 and Product H9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Direct Labor- Total Direct Production Hours Per Unit Labor-Hours Product U2 500 7.0 3,500 Product 19 500 6.0 3,000 Total direct labor-hours 6,500 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Overhead Product Product Activity Cost Pools Activity Measures Cost U2 H9 Total Labor-related DLHs $231,725 3.500 3.000 6,500 Production orders orders 24,295 300 200 500 Order size MHS 320,970 3,800 4,000 7,800 $576.990 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: O $41.15 per DLH $88.77 per DLH $48.59 per DLH O $35.65 per DLH