12) Normalized overhead rates are used in order to 6.66 Points O assist managers in making decisions because they are more representative of the long-run costs of producing a product because they are not affected by volume fluctuations or the erratic behavior of many overhead costs. confuse and perplex students taking a course in management accounting provide an exact allocation of the actual overhead costs to products indicate the actual cost of producing a unit of producteach month 13) Mouse Corp. began operations on January 1, 20X1. The company sells a single product for $60 per unit. During 20X1, 20,000 units were produced and 15,000 were sold. No work-in-process inventories were present on December 31, 20X1. Costs during 20X1 were as follows: FIXED VARIABLE COSTS Direct materials... - $5.00 per unit produced Direct labor... -- $12.00 per unit produced Manufacturing overhead $44,000 $ 4.00 per unit produced Selling and administrative expenses $30,000 $ 2.00 per unit sold The company computes their fixed manufacturing overhead rate for absorption-costing purposes using an expected production level of 22.000 units. The actual fixed overhead for the year was equal to the budgeted amount. The income under the variable-costing approach for Mouse Corp. for the year 20X1 would be_ 6.66 Points $491,000 $477,000 $481,000 $487.000