Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,900 units of Basic Product and 1,500 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.4 direct labor hours per unit and Deluxe Product requires 0.8 direct labor hours per unit. The total estimated overhead for next period is $99,635. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory-with estimated overhead costs and expected activity as follows: Estimated Overhead Expected Activity Basic Deluxe Product Product Total 1,400) 700 2,100 Activity Cost Pool Costs Activity 1 $30,732 Activity 2 17,640 2,000 300 2,300 General Factory Total 51,263 760 1,200 1,960 $99,635 The overhead cost per unit of Deluxe Product under the traditional costing system is closest to: