Look 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, N06D and M09K, about which it has provided the following data:

	N06D			M09K
Direct materials per unit	$	17.70		$	62.50
Direct labor per unit	$	5.00		$	16.00
Direct labor-hours per unit		0.50			1.60
Annual production (units)		40,000			15,000

The company's estimated total manufacturing overhead for the year is $2,532,200 and the company's estimated total direct labor-hours for the year is 44,000.

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)	$	880,000
Setting up machines (setups)		376,200
Parts administration (part types)		1,276,000
Total	$	2,532,200

	Expected Activity
	N06D	M09K	Total
DLHs	20,000	24,000	44,000
Setups	1,408	1,100	2,508
Part types	1,540	1,012	2,552

The manufacturing overhead that would be applied to a unit of product M09K under the activity-based costing system is closest to:

Multiple Choice

• $76.73

• $92.08

• $11.00

• $168.81