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

question 111

Multiple Choice

Michael & Co.expects overhead costs of $60,000 per month and direct production costs of $24 per unit.The estimated production activity for the current accounting period is as follows: $$\begin{array} { l c r r r } & \text { 1st Quarter } & \text { 2nd Quarter } & \text { 3rd Quarter } & \text { 4th Quarter } \\\text { Units produced } & 11,500 & 9,000 & 8,250 & 11,250\end{array}$$ The predetermined overhead rate based on units produced is: (Round the answer to 2 decimal places.)

• A) $1.50 per unit.
• B) $2.67 per unit.
• C) $18.00 per unit.
• D) $42.00 per unit.

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