Binegar Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, R58G and R09O, about which it has provided the following data:

The company's estimated total manufacturing overhead for the year is $1,617,600 and the company's estimated total direct labor-hours for the year is 24,000.
The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:
Activities and Activity Measures ____________ Estimated Overhead Cost
Assembling products (DLHs) ......................................... $ 696,000
Preparing batches (batches) ........................................ 252,000
Product support (product variations) ........................ 669,600
Total .......................................................... $1,617,600

1. The manufacturing overhead that would be applied to a unit of product R58G under the company's traditional costing system is closest to:
a) $6.74
b) $16.10
c) $22.84
d) $2.90
2. The manufacturing overhead that would be applied to a unit of product R09O under the activity-based costing system is closest to:
a) $113.46
b) $255.00
c) $141.54
d) $17.28

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R58G R090 Direct materials per unit. $15.90 $52.40 Direct labor per unit. $27.30 $1.30 Direct labor-hours per unit. Annual production. 0.10 2.10 30,000 10,000 Expected Activity R58G R090 Total 3,000 21,000 DLH... Batches. 24,000 528 1,152 1,680 Product variations.. 1,056 2,232 1,176