Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 2,400 units of Basic Product and 2,000 units of Deluxe Product. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Basic Product requires 0.3 direct labor hours per unit and Deluxe Product requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $99,385. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost poolsActivity 1, Activity 2, and General Factorywith estimated overhead costs and expected activity as follows: Estimated Expected Activity Activity Cost Pool Overhead Costs Basic Product Deluxe Product Total Activity 1 $ 30,672 1,600 800 2,400 Activity 2 17,565 2,200 400 2,600 General Factory 51,148 720 1,200 1,920 Total $ 99,385 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor hours.) The overhead cost per unit of Deluxe Product under the activity-based costing system is closest to: $38.23. $15.98. $21.10. $22.45.