At the beginning of the accounting period, nutrition incorporated estimated that total fixed overhead cost would be $50,600 and that sales volume would be 10,000 units. at the end of the accounting period actual fixed overhead cost amounted to $56,100 and actual sales volume was 11,000 units. nutrition uses a predetermined overhead rate and a cost plus pricing model to establish its sales price. based on this information the predetermined overhead rate is

$ 5.06 per unit

Explanation:

Given data:

Estimated fixed overhead cost = $ 50600

Estimated sales volume = 10000 units

Actual fixed overhead cost = $ 56100

Actual sales volume = 11000 units

Now,

the predetermined overhead rate is given as:

Predetermined overhead rate = (Estimated Fixed Overhead Cost) / (Number of estimated sales Volume)

on substituting the values in the above formula, we get

Predetermined overhead rate = $ 50600 / 10000

or

Predetermined overhead rate = $ 5.06 per unit

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