Q. 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: