Diemer,Inc. ,manufactures and sells two products: Product N4 and Product R7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: 
The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: 
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:
Definitions:
Welfare Payments
Financial assistance provided by the government to individuals or families in need, aimed at ensuring a minimum level of well-being and social support.
Urban
Relating to or characteristic of a city or town.
Market-Oriented Economy
An economic system where decision-making and investment are determined by the signals from markets rather than by central planning by the government.
Monetary Transactions
Financial activities involving the transfer of money from one party to another, can include both domestic and international transactions.
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