Michael & Co. expects overhead costs of $30,000 per month and direct production costs of $32 per unit. The estimated production activity for the current accounting period is as follows:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units produced	10,700	5,500	5,500	8,300

The allocation rate for overhead costs based on units produced is:

Multiple Choice

• $1.00 per unit.

• $44.00 per unit.

• $12.00 per unit.

• $1.00 per unit.