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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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