Machuga, Inc., manufactures and sells two products: Product C1 and Product M2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product C1	800	9.0	7,200
Product M2	700	11.0	7,700
Total direct labor-hours			14,900

The direct labor rate is $18.70 per DLH. The direct materials cost per unit is $297.00 for Product C1 and $246.20 for Product M2. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

	Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product C1	Product M2	Total
Labor-related	DLHs	$558,452	7,200	7,700	14,900
Production orders	orders	75,240	500	600	1,100
General factory	MHs	886,410	4,400	4,600	9,000
		$1,520,102

The overhead applied to each unit of Product C1 under activity-based costing is closest to:

$918.18 per unit

$541.70 per unit

$1,013.40 per unit

$921.77 per unit