Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,000 units, while 1,800 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 0.75 direct labor hours per unit. The total estimated overhead for the period is $152,415. 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 Activity cost pool Setup costs Estimated overhead cost $8,685 Toasters 245 batches Blenders 420 batches Total 665 batches Engineering costs Maintenance costs Total $70,980 870 engineering hours 880 engineering hours 1,750 engineering hrs $72,750 2,500 direct labor hours 1,350 direct labor hours 3,850 direct labor hours $152,415 The cost pool activity rate for Engineering Costs would be closest to (Round all answers to two decimal places.) A. $18.90 per engineering hour. B. $13.06 per engineering hour. C. $40.56 per engineering hour. D. $52.58 per engineering hour.