CompInc. produces two products: a high-end laptop computer and an inexpensive laptop. The two products use two overhead activities, which have the following costs:

Setting up equipment	$8,000
Machining	48,000

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

	High-end	Inexpensive
Direct Labour	$24,000	$8,000
Direct Materials	15,000	4,000
Units	2,000	2,000
Machine Hours	1,000	3,000
Setup Hours	150	50

What is the overhead cost per unit for each inexpensive laptop, when using overhead rates that are based on machine hours and setup hours?

$21.00 per unit

$19.00 per unit

$12.00 per unit

$10.00 per unit