Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are $1,800$ units of Basic Product and $1,400$ 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 $0\mathrm{.}3$

direct labor$-$hours per unit and Deluxe Product requires $0\mathrm{.}6$ direct labor$-$hours per unit. The total estimated overhead for next period is $$99,585.$

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:

$($Note: The General Factory costs are allocated on the basis of direct labor$-$hours.$)$

The predetermined overhead rate under the traditional costing system is closest to: