Punches, Inc., manufactures and sells two products: Product H7 and Product Y2. 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 H7	100	6.0	600
Product Y2	900	4.0	3,600
Total direct labor-hours			4,200

The direct labor rate is $17.80 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product H7	$132.50
Product Y2	$266.40

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

			Expected Activity
Activity Cost Pools	Activity Measures	Estimated Overhead Cost	Product H7	Product Y2	Total
Labor-related	DLHs	$205,296	600	3,600	4,200
Machine setups	setups	38,380	400	600	1,000
General factory	MHs	528,198	3,400	3,200	6,600
		$771,874

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product Y2 would be closest to:

$320.12 per unit

$195.52 per unit

$153.52 per unit

$735.12 per unit