Marchan, Inc., manufactures and sells two products: Product K1 and Product S6. 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 K1	500	8.0	4,000
Product S6	100	5.0	500
Total direct labor-hours			4,500

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product K1	Product S6	Total
Labor-related	DLHs	$127,485	4,000	500	4,500
Production orders	orders	27,820	400	600	1,000
General factory	MHs	452,868	4,000	3,800	7,800
		$608,173

The activity rate for the General Factory activity cost pool under activity-based costing is closest to:

$45.73 per MH $254.97 per MH $135.15 per MH $58.06 per MH