Sophia Enterprises produces two-wheel rim models: standard and deluxe. The budgeted data for 2021 are as follows:

Standard Deluxe

Units produced 250,000 35,000

Direct labor hours (DHLs) 560,000 80,000

Direct costs per unit 2 2.5

The company has identified three cost pools to allocate overhead costs. The following estimates are provided for 2021:

Cost pool Overhead Costs Cost driver Activity level

Standard Deluxe

Supervision $320,000 Supervision hours 600,000 200,000

Machine operation $120,000 Machine hours 800,000 160,000

Facility rent $200,000 Square feet of area 80,000 20,000

Using the ABC method, what is the unit cost of the standard wheel rim

A.$3.5

B.$4

C.$4.35

D.$5