A budget was estimated by a company for producing 500 C's and 300 D's for the coming next year. D's usually take twice the time to be made as it takes for C's.

Expected total fixed overheads are $102,000.

Cost relating to C's are as such:

Material 3000 Kg $24,000

Labor 2000 hours $40,000

Fixed overhead are to be absorbed on an hourly basis. Some of the material goes to waste which is estimated to be about 10% of the material purchased.

Absorption cost per unit of C is?

A. $225.52

B. $226.05

C. $260.30

D. $260.83

Please answer the question and explain why it is correct, thank you.