Latting Manufacturing Corporation Has a Traditional Costing System in Which

Latting 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, T73C and R28K, about which it has provided the following data: The company's estimated total manufacturing overhead for the year is $1,526,700 and the company's estimated total direct labor-hours for the year is 30,000.

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:

-The manufacturing overhead that would be applied to a unit of product T73C under the company's traditional costing system is closest to:

A) $18.38
B) $28.56
C) $10.18
D) $4.80