A Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:

Activity	Cost Driver	Amount			M		XY
Production setups	Number of setups	$	84,000		8		12
Material handling	Number of parts		42,000		56		24
Packaging costs	Number of units		211,500		70,000		50,000
		$	337,500

What is the total overhead per unit allocated to Product XY using activity-based costing (ABC)?

		$2.52.
		$3.02.
		$2.66.
		$2.81.