Cross Roads Manufacturing currently uses a traditional costing system. The company allocates overhead to its two products, Zips and Dees, using a predetermined manufacturing overhead rate based on direct labor hours. Here is data related to the company's two products:

Zips Dees
Direct materials per unit $140 $100
Direct labor per unit $55 $50
Direct labor hours per unit 2.0 1.5
Annual production 25,000 40,000
Information about the company's estimated manufacturing overhead for the year follows:

Activities Activity measures Estimated overhead cost
Supervision and maintenance Direct labor hours 2,200,000
Batch costs Number of batches $212,500
Engineering changes Number of engineering hours $180,000
Total estimated manufacturing overhead for the year $2,592,500
Total estimated direct labor hours for the company for the year are 110,000 hours.

The company is evaluating whether it should use an activity-based costing system in place of its traditional costing system.

Additional information about production needed for the activity-based costing system follows:

Expected activity Zips Dees Total
Supervision and maintenance 50,000 60,000 110,000
Batch costs 2,000 500 2,500
Engineering changes 1,800 1,200 3,000
Required:

The amount of manufacturing overhead that would be allocated to one unit of Zips using an activity-based costing system would be closest to:

a. $64.81.

b. $32.86.

c. $51.12.

d. $11.95.