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Question: Mickey & Co. expects overhead costs of $26,250 per month and direct production costs of $27 per unit. The estimated production activity for the 2013 accounting period is as follows:

                         1st Quarter       2nd Quarter       3rd Quarter       4th Quarter

Units produced        10,200                7,500               7,200             10,100

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

$0.76 per unit.

$1.33 per unit.

$36.00 per unit.

$9.00 per unit.

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