Michael & Co The Predetermined Overhead Rate Based on Units Produced Is: (Round

question 83

Multiple Choice

Michael & Co. expects overhead costs of $16,000 per month and direct production costs of $30 per unit. The estimated production activity for the current accounting period is as follows: $$\begin{array} { | c | c | c | c | c | } \hline & 1 ^ { st} \text {Quarter } & 2 ^ { \text {nd } } \text { Quarter }& { 3 } ^ { \text {rd } }\text { Quarter } \text { Quarter } & 4 ^ { \text {th } } \text { Quarter } \\\hline \text { Units produced } & 10,500 & 6,000 & 6,000 & 9,500 \\\hline\end{array}$$ The predetermined overhead rate based on units produced is: (Round the answer to 2 decimal places.)

• A) $0.50 per unit.
• B) $2.00 per unit.
• C) $6.00 per unit.
• D) $36.00 per unit.