6.

Assume a company reported the following information for this year:

Budgeted (estimated) production		80,000		units
Budgeted sales		80,000		units
Production capacity		100,000		units
Selling price	$	50		per unit
Variable manufacturing cost	$	18		per unit
Estimated total manufacturing overhead cost (all fixed)	$	700,000
Selling and administrative expenses (all fixed)	$	250,000
Beginning inventories	$	0

Using a predetermined overhead rate based on capacity with units produced as the allocation base, the companys plantwide predetermined overhead rate is closest to: