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Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,700 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 0.3 direct labor hours per unit and Deluxe Product requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $98,785. 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 Expected Activity Basic Product 30,528 17,385 Deluxe Product Activity Cost Overhead Pool Costs Activity 1 $ Activity 2 General Factory Total Total 1,000 600 1,600 1,700 200 1,900 510 660 1,170 50,872 98,785 (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: $50.66. $26.09. $35.28. $38.16