MC Qu. 8 Koszyk Manufacturing Corporation has a traditional...

Koszyk 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, P85G and C43S, about which it has provided the following data:

	P85G	C43S
Direct materials per unit	$31.80	$63.30
Direct labor per unit	$10.00	$27.00
Direct labor-hours per unit	0.20	1.00
Annual production (units)	45,600	21,100

The company's estimated total manufacturing overhead for the year is $1,632,986 and the company's estimated total direct labor-hours for the year is 30,220.

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)	$ 695,060
Setting up machines (setuos)	551,702
Parts administration (part types)	386,224
Total	$ 1,632,986

	Expected Activity
	P85G	C43S	Total
DLHs	9,120	21,100	30,220
Setups	1,450	1,024	2,474
Part types	677	279	956

The manufacturing overhead that would be applied to a unit of product C43S under the activity-based costing system is closest to:

$39.16

$80.22

$49.71

$16.76