Hewett, Inc., manufactures and sells two products: Product E7 and Product U7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product E7	1,000	7.0	7,000
Product U7	200	8.0	1,600
Total direct labor-hours			8,600

The direct labor rate is $29.50 per DLH. The direct materials cost per unit is $164.10 for Product E7 and $289.50 for Product U7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product E7	Product U7	Total
Labor-related	DLHs	$380,120	7,000	1,600	8,600
Production orders	orders	58,422	300	400	700
General factory	MHs	369,754	5,000	4,800	9,800
		$808,296

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:

$37.73 per DLH

$44.20 per DLH

$83.46 per DLH

$93.99 per DLH