Exhibit 3-1 Hydrate Inc. makes two types of sports drinks and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench. Additional data is as follows:

	Cost Driver and	Estimated
	Estimated Level	Overhead	Use of Cost Driver	Use of Cost Driver
Cost Pool	of Activity	Cost	by Sports Light	by Thirst Quench
Equipment Setup	100 setups	$20,000	65 setups	35 setups
Materials Ordering	140 orders	$21,000	95 orders	45 orders
Quality Control	200 inspections	$22,000	150 inspections	50 inspections
Mixing	9,000 machine hours	$18,000	5,000 machine hours	946 machine hours

Refer to Exhibit 3-1. What is the overhead cost per unit for Thirst Quench using ABC?

$0.45

$0.86

None of the answer choices is correct.

$0.50

$2.00

Please help, I'm stuck on this one and can't seem to figure out how to find this. Thank you!