Michael Visual Works,Inc

Essay

Michael Visual Works,Inc.uses a normal costing system and estimated its overhead costs for the current year to be as follows: fixed,$525,000;variable,$4 per unit.Michael expected to produce 350,000 units during the year.During the year,the company incurred overhead costs of $2,100,000 and produced 400,000 units.Calculate the rate to be used to apply manufacturing overhead costs to products.