Question - Kaplan Company Inc. uses a normal costing system and estimated its overhead costs for the current year to be as follows: fixed, $725,000; variable, $2 per unit. Kaplan Company is expected to produce 100,000 units during the year. During the year, the company incurred overhead costs of $925,000 and produced 100,000 units. Calculate the rate to be used to apply manufacturing overhead costs to products.