Flat Company currently produces cardboard boxes in an automated process.Expected produc?tion per month is 50,000 units.The required direct materials cost is $0.30 per unit.Manufacturing fixed overhead costs are $25,000 per month.Manufacturing overhead is allocated based on units of production._____ is the budgeted manufacturing fixed overhead rate.
A)$2.08 per unit
B)$0.30 per unit
C)$0.50 per unit
D)None of these answers is correct

Question

Quizplus · Accepted Answer

The budgeted manufacturing fixed overhead rate is calculated by dividing the total fixed overhead costs by the expected production units: $25,000 / 50,000 units = $0.50 per unit.

Flat Company Currently Produces Cardboard Boxes in an Automated Process