Answer:
<em>8.17 rate per unit</em>
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Explanation:
The company will be using a plantwide rate so we have to add the manufacturing overhead cost
3,107,500 + 1,520,000.00 = 4,627,500.00 overhead cost
and now distribute over the cost driver which is the machine hours
250,000 + 175,000.00 = 425,000.00 total machine hours
4,627,500/425,000 = 10.88823529 rate <u>per machine hours</u>
Notice we are asked for the unit rate so we multiply the rate per machine hours by the amount of hours ittakes to do a single unit:
10.88823529 * 0.75 = 8.166176 = <em>8.17 rate per unit</em>