Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:

Setting up equipment$3,000Machining$15,000

The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.

Excellent LaptopsOutstanding ComputersDirect Labor$25,000$10,000Direct Materials$20,000$5,000Expected Production in Units3,0003,000Machine Hours8502,000Setup Hours8075

Calculate the overhead cost per unit for each of Outstanding Computer's computer using overhead rates based on machine hours and setup hours.(Note: Round the overhead rates and the final answer to two decimal places.)

a.$3.99 per unit