SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this years budget relating to the production of these two products:

	ABC	XYZ
Units to be produced	8,000	12,000
Machine-hours expected	220	440
Direct labor-hours expected	440	660
Materials handling (number of moves)	132	154
Machine setups (number of setups)	44	33

The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured:

Expected Total Costs
Direct Labor Wages	$110,000
Materials handling	$8,800
Labor-related overhead	$92,400
Machine setups	$15,400

What is the expected overhead allocated per unit of product ABC? NOTE: Round all per-unit amounts to the nearest cent.

Select one:

a. $1.61

b. $6.23

c. None of the amounts listed.

d. $11.33

e. $5.64