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MC Qu. 41 Mickey & Co. expects overhead costs of... Mickey & Co. expects overhead costs of $25,000 per month and direct production costs of

MC Qu. 41 Mickey & Co. expects overhead costs of...

Mickey & Co. expects overhead costs of $25,000 per month and direct production costs of $22 per unit. The estimated production activity for the 2013 accounting period is as follows:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units produced 12,500 8,900 8,750 19,850

The predetermined overhead rate based on units produced is (rounded to the nearest penny) is:

$28.00 per unit.$2.00 per unit.$0.81 per unit.$6.00 per unit.

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