The Summer Sandal Company currently produces sandals in an automated process. The expected production per month is 20,000 units. The required direct materials cost $1.50 per unit. The manufacturing fixed overhead costs are $30,000 per month. The manufacturing overhead is allocated based on units of production.

What is the budgeted manufacturing fixed overhead rate?

a. $2.00 per unit

b. $3.00 per unit

c. $1.50 per unit

d. $1.20 per unit

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