Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,500 units of Basic Product and 1,100 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 $99,435. 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 Costs Activity Cost Pool Activity 1 Activity 2 General Factory Total Expected Activity Basic Deluxe Product Product Total 1,000 850 1,850 1,600 450 2,050 600 880 1,480 $30,684 17,580 51,171 $99,435 (Note: The General Factory costs are allocated on the basis of direct labor hours.) The overhead cost per unit of Deluxe Product under the activity-based costing system is closest to: (Round your intermediate values to 2 decimal places.) Multiple Choice O $27.66. O $43.99. O $48.50. O $40.48