The Beach Company Currently Produces Sandals in an Automated Process

Multiple Choice

The Beach Company currently produces sandals in an automated process. Expected production per month is 20,000 units. The required direct materials cost $1.50 per unit. Manufacturing fixed overhead costs are $40,000 per month. Manufacturing overhead is allocated based on units of production. is the budgeted manufacturing fixed overhead rate.

A) $.50 per unit
B) $2.00 per unit
C) $1.50 per unit
D) None of these answers is correct.