Allure 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	$	73,000		12		18
Material handling	Number of parts		53,000		56		24
Packaging costs	Number of units		230,500		93,000		62,000
		$	356,500

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

$2.45.

$2.30.

$2.20.

$2.03.