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

Multiple Choice

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: $\begin{array}{|l|l|l|l|l|}\hline & 1^{st} \text { Quarter } &2^{nd} \text { Quarter } & 3^{nd}\text { Quarter } &4^{th} \text { Quarter } \\\hline \text { Unats produced } & 11,500 & 9,000 & 8,250 & 11,250 \\\hline\end{array}$ The predetermined overhead rate based on units produced is (rounded to the nearest penny) is:

A) $1.50 per unit.
B) $2.67 per unit.
C) $18.00 per unit.
D) $42.00 per unit.