During October, SIMPly Industrial produced 35,000 units of product with costs as follows:

Direct materials	$84,000
Direct labour	43,000
Variable overhead	13,000
Fixed overhead	147,000
	$287,000

What is SIMPlys unit cost for October, calculated on the variable costing basis?

1)

$3.25

2)

$3.75

3)

$4.00

4)

$4.50