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If the overhead application rate is $20 per unit how many units are forecast to apply...

If the overhead application rate is $20 per unit how many units are forecast to apply $250,000 in overhead

10,000
12,500
25,000
None of the above
0 0
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Answer #1

Units = Total overhead/Overhead rate per unit

If the overhead application rate is $20 per unit, units forecast to apply $250,000 in overhead = 250,000/20

= 12,500

Hence, correct option is (b)

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