Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,700 units of Basic Product and 1,300 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.3 direct labor hours per unit and Deluxe Product requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $98,985 The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory-with estimated overhead costs and expected activity as follows: Expected Activity stimated Overhead Costs $30,576 Basic Deluxe tivity Cost Pool Activity 1 Activity 2 General Factory Total ProductProduct Total 1,400 2,100 510 500 250 780 1,900 17,445 2.3 2,350 50,964 $98,985 1,290 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor hours) The predetermined overhead rate under the traditional costing system is closest to: O $76.73 O $3951 O $16.09 O $742