Assume that a value stream in McKinney Company has two products (Product 1 and Product 2) with material costs of $60,000 (Product 1) and $240,000 (Product 2) for a given week. The conversion costs for the week amounted to $300,000. For Product 1, 4,000 units were produced and shipped to customers. For Product 2, 8,000 units were produced and shipped. Product 1 has a cycle time of 0.5 hour, and Product 2 has a cycle time of 1.0 hour. The net production hours for the stream totaled 10,000 hours.

Calculate the total value-stream cost per unit for Product 1 using duration-based costing.

$30 per unit

$40 per unit

$55 per unit

$60 per unit