Plantwide predetermined overhead rate

Reference no: EM13158237

Kiki Co. has total budgeted fixed over head of $100,000, and budgeted variable overhead of $20 per unit for the coming period. Expected sales are 40,000 units; expected production is 50,000 units; practical (maximum) capacity is 100,000 units. If Kiki Co. uses a normal costing system and a plantwide predetermined overhead rate, the budgeted overhead per unit is:

A) $22.50.

B) $22.00.

C) $21.00.

D) none of the above (a, b, or c.)

Reference no: EM13158237

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