Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below:

Xtreme Pathfinder

Selling price per unit $ 115 $ 85

Direct materials per unit $ 63.9 $ 51

Direct labor per unit $ 12 $ 10

Direct labor-hours per unit 1.2 DLHs 1 DLHs

Estimated annual production and sales 28,000 units 75,000 units

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Estimated total manufacturing overhead $2,063,400

Estimated total direct labor-hours 108,600 DLHs