Tiger Pride produces two product lines:

Tminusshirts

and Sweatshirts. Product profitability is analyzed as follows:

	T-SHIRTS		SWEATSHIRTS
Production and sales volume	72,000 units		40,000 units
Selling price	$18.00		$29.00
Direct material	$1.90		$5.00
Direct labor	$ 4.20$4.20		$7.20
Manufacturing overhead	$ 4.40$4.40		$3.00
Gross profit	$7.50		$13.80
Selling and administrative	$3.70		$7.00
Operating profit	$3.80		$6.80

Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:

Activity	Activity cost	Activityminuscost driver
Supervision	$118,320	Direct labor hours (DLH)
Inspection	$143,250	Inspections
Activities demanded
TminusSHIRTS	SWEATSHIRTS
0.75 DLH/unit	1.2 DLH/unit
54,000 DLHs	48,000 DLHs
80,000 inspections	15,500 inspections

Under the revised ABC system, overhead costs per unit for the Sweatshirts will be ________. (Do not round interim calculations. Round the final answer to the nearest cent.)

A.

$ 1.97$1.97

per unit

B. $ 1.64 per unit

C. $ 1.10 per unit

D.$ 1.50 per unit