Cassidy Manufacturing Corporation Has a Traditional Costing System in Which

Cassidy 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,VIP and Kommander,about which it has provided the following data:
$$\begin{array} { | l | r | r | } \hline & \text { VIP } & \text { Kommander } \\\hline \text { Direct materials per unit } & \$ 27.50 & \$ 62.10 \\\hline \text { Direct labor per unit } & \$ 15.60 & \$ 52.00 \\\hline \text { Direct labor-hours per unit } & 0.60 & 2.00 \\\hline \text { Annual production } & 40,000 & 15,000 \\\hline\end{array}$$
The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000.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:
$\begin{array}{|l|r|}\hline \begin{array}{l}\text { Activities and Actirity } \\\text { Measures }\end{array} & \text { Estimeted Overhead } \\& \text { cost}\\\text { Supporting direct labor (DLHs) } & \$918,000 \\\hline \text { Setting up machines (setups) } &397,440 \\\hline \text { Parts administration (part } & 1,134,000\\\text { ypes) } & \\\hline \text { Total } & \$2,449,440 \\\hline\end{array}$

The unit product cost of Product VIP under the company's traditional costing system is closest to:

A) $53.30.
B) $70.32.
C) $43.10.
D) $78.57.