The Foot Company currently produces sandals in an automated process.Expected produc?tion per month is 20,000 units.The required direct materials cost $1.50 per unit.Manufacturing fixed overhead costs are $45,000 per month.Manufacturing overhead is allocated based on units of production._____ is the budgeted manufacturing fixed overhead rate.
A)$.50 per unit
B)$1.50 per unit
C)$2.25 per unit
D)None of these answers is correct

Question

Quizplus · Accepted Answer

Manufacturing fixed overhead costs of $45,000 per month are allocated based on the expected production of 20,000 units. Therefore, the budgeted manufacturing fixed overhead rate per unit would be calculated as $45,000/20,000 units, which equals $2.25 per unit.

The Foot Company Currently Produces Sandals in an Automated Process