Question: Mickey & Co. expects overhead costs of $26,250 per month and direct production costs of $27 per unit. The estimated production activity for the 2013 accounting period is as follows:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units produced 10,200 7,500 7,200 10,100
The predetermined overhead rate based on units produced is (rounded to the nearest penny) is:
$0.76 per unit.
$1.33 per unit.
$36.00 per unit.
$9.00 per unit.