Question 33 1 pts Lamar Jackson Motors makes old-fashioned style bicycles and motorcycles. 960 bicycles and 1,780 motorcycles are manufactured and sold during the year. Under a traditional simple costing system, direct labor hours are used to apply overhead to products. 2.75 direct labor hours per unit, and 15 direct labor hours per unit are required to make one bicycle and one motorcycle, respectively. The total estimated overhead for the period is $146,690. The company is interested in changing to an activity-based costing system for its products. If an activity-based costing system is employed, it would have the following three activity cost pools: Activity cost pool Estimated overhead cost $7,800 Expected Activity Bicycles Motorcycles 400 set ups Total set up costs 225 set ups 625 set ups $22.250 550 mhrs. 700 mhrs. 1250 mhrs. engineering costs maintenance costs $116,640 2470 runs 2330 runs 4800 runs The Overhead cost per bicycle using the traditional system would be closest to: $27.63 $21.98 $75.97 53132