Safa Visual Works,Inc

Multiple Choice

Safa Visual Works,Inc.estimated its overhead costs for the current year to be as follows: fixed,$175,000;variable,$4 per unit.Safa expected to produce 350,000 units during the year.During the year,the company incurred overhead costs of $1,600,000 and produced 400,000 units.Calculate the rate to be used to apply manufacturing overhead costs to products.

A) $3.50
B) $4.50
C) $5.50
D) $9.00