fill in the blank question\nabc company incurred $124,000 of manufacturing overhead in march and applied…

fill in the blank question\nabc company incurred $124,000 of manufacturing overhead in march and applied $120,000 to march production. if abc produced 16,000 units during march, its predetermined overhead rate being used for the year is $ per unit.\nneed help? review these concept resources.\nread about the concept

fill in the blank question\nabc company incurred $124,000 of manufacturing overhead in march and applied $120,000 to march production. if abc produced 16,000 units during march, its predetermined overhead rate being used for the year is $ per unit.\nneed help? review these concept resources.\nread about the concept

Answer

Explanation:

Step1: Recall the formula for applied overhead

Applied overhead = Predetermined overhead rate × Number of units produced.

Step2: Rearrange the formula to find the rate

Predetermined overhead rate = Applied overhead / Number of units produced. We know that applied overhead is $120,000 and number of units produced is 16,000. So, the rate is $\frac{120000}{16000}$.

Step3: Calculate the rate

$\frac{120000}{16000}=7.5$

Answer:

7.5