Feauto 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, I63E and E76I, about which it has provided the following data:

	I63E			E76I
Direct materials per unit	$	22.20		$	66.60
Direct labor per unit	$	17.50		$	52.50
Direct labor-hours per unit		0.50			1.50
Annual production (units)		84,000			28,000

The company's estimated total manufacturing overhead for the year is $3,141,600 and the company's estimated total direct labor-hours for the year is 84,000.

The company is considering using a form 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
Assembling products (DLHs)	$	2,100,000
Preparing batches (batches)		186,000
Product support (product variations)		855,600
Total	$	3,141,600

	Expected Activity
	I63E	E76I	Total
DLHs	42,000	42,000	84,000
Batches	1,130	630	1,760
Product variations	2,260	1,260	3,520

The manufacturing overhead that would be applied to a unit of product I63E under the company's traditional costing system is closest to:

Multiple Choice

• $37.40

• $56.10

• $37.40

• $18.70