Gramps' Remedy manufactures athletes' foot powder. The company uses a standard costing system. Following are data pertaining to the company's operations for 1999:
Production for the year............................... 180,000 units
Sales for the year (sales price per unit, $1.25)..... 195,000 units
Beginning 1999 inventory........................... 35,000 units

Fixed manufacturing overhead is assigned to units of production based on a predetermined rate using a normal production capacity of 200,000 units per year. What is the estimated annual fixed manufacturing overhead?

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STANDARD COSTS TO PRODUCE 1 UNIT $0.15 0.10 Direct material Direct labor Variable overhead Fixed overhead 0.15 SELLING AND ADMINISTRATIVE COSTS Variable (per unit sold) Fixed (per year) $0.14 120,000