Warner Co. has budgeted fixed overhead of $150,000. Practical capacity is 6,000 units, and budgeted production is 5,000 units. During February, 4,800 units were produced and $155,600 was spent on fixed overhead. What is the budgeted fixed overhead rate based on practical capacity?
A. $30.00
B. $31.25
C. $25.00
D. $31.12
Answer: C
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