Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries), medium (for cockatiels and small parrots), and large (for cockatoos and other large parrots). The company has recently implemented an activity-based costing system. Bird's Eye View has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.

Activity Cost Driver Budgeted Costs

Materials handling Labor hours $55,000

Automated processing Machine hours 40,000

Plastic parts insertion Number of parts 6,000

Inspections Labor hours 29,000

Packaging Orders shipped 31,000

Total indirect manufacturing cost $161,000

The following information relates to each size of bird cage and next year'santicipatedmanufacturing operations:

Large Medium Small

Units to be produced 350 400 600

Orders to be shipped 180 200 250

Number of parts per unit 8 6 4

Machine hours per unit 4 2 1

Labor hours per unit 2 2 2

Under an activity-based costing system, what is the per unit cost for manufacturing overhead of aSMALLcage (rounded)?

A) $120

B) $151

C) $136

D) $100