Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Each unit requires 0.75 machine hours to produce. How much overhead will be assigned to each unit produced given the following budgeted amounts?

Budgeted Data:	Department 1		Department 2
Overhead costs	$ 3,107,500		$ 1,520,750
Direct labor hours	150,000	DLH	250,000	DLH
Machine hours	250,000	MH	175,000	MH

A) $11.57 per unit B) $8.17 per unit C) $5.61 per unit D) $12.43 per unit E) $10.89 per unit