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Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 units. The company has traditionally used direct labour hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labour hours per unit, and Product B requires 0.2 direct labour hours per unit. The total estimated overhead for next period is $92,023. 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
Activity Cost Pool	Estimated Overhead Cost	Product A	Product B	Total
Activity 1	$14,487	500	600	1,100
Activity 2	64,800	2,500	500	3,000
General Factory	12,736	240	100	340
Total	$92,023

(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour hours.)

The predetermined overhead rate (i.e., activity rate) for Activity 1 under the activity-based costing system is closest to which of the following?

Multiple Choice

$13.17

$24.15

$28.97

$83.66