Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2400 units, while 1200 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require .75 direct labor hours per unit. The total estimated overhead for the period is $150,915. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools: Expected activity Estimated overhead Activity cost pool cost Toasters Blenders Total Setup costs $8185 235 batches 400 batches 635 batches Engineering costs $69,980 870 engineering 820 engineering hours 1690 engineering hrs Maintenance 2700 direct labor 1295 direct labor 3995 direct labor costs $72,750 hours hours hours Total $150,915 The overhead rate using the simple costing system would be closest to (Round all answers to two decimal places.) $37.78 per direct labor hour. $116.54 per direct labor hour. $55.89 per direct labor hour. $39.66 per direct labor hour