Mickey & Co. expects overhead costs of $37,500 per month and direct production costs of $17 per unit. The estimated production activity for the 2013 accounting period is as follows:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units produced	12,000	9,500	8,500	15,000

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

$.074 per unit

$1.20 per unit

$10.00 per unit

$27.00 per unit