TB MC Qu$.4-57($Static$)$ Lefave, Incorporated, manufactures and sells...

Lefave, Incorporated, manufactures and sells two products: Product Q$1$ and Product D$5.$ Data concerning the expected production of each product and the expected total direct labor$-$hours $($DLHs$)$ required to produce that output appear below:

Expected Production Direct Labor$-$Hours Per Unit Total Direct Labor$-$Hours

Product Q$11,0005\mathrm{.}05,000$

Product D$54002\mathrm{.}0800$

Total direct labor$-$hours $5,800$

The company is considering adopting an activity$-$based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity

Product Q$1$ Product D$5$ Total

Labor$-$related DLHs $ $152,4825,0008005,800$

Product testing tests $48,909400300700$

Order size MHs $204,8253,8003,7007,500$

$ $406,216$

If the company allocates all of its overhead based on direct labor$-$hours using its traditional costing method, the predetermined overhead rate would be closest to:

Multiple Choice

$$26\mathrm{.}29$ per DLH

$$70\mathrm{.}04$ per DLH

$$69\mathrm{.}87$ per DLH

$$27\mathrm{.}31$ per DLH