Mcleese, Inc., manufactures and sells two products: Product I6 and Product L1. 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 I6	800	8.0	6,400
Product L1	700	5.0	3,500
Total direct labor-hours			9,900

The direct labor rate is $26.60 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product I6	$255.60
Product L1	$196.80

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 I6	Product L1	Total
Labor-related	DLHs	$215,622	6,400	3,500	9,900
Machine setups	setups	69,938	600	500	1,100
General factory	MHs	382,275	3,800	3,700	7,500
		$667,835

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:

$50.97 per DLH

$21.78 per DLH

$63.58 per DLH

$67.46 per DLH