Based on estimated total production cost, determine the expected quarterly cost per unit for Stonehams product. (Round your answers to 2 decimal places.)

	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Estimated cost		per unit		per unit		per unit		per unit

Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per unit

Calculate the unit cost per quarter based on the predetermined overhead rate. (Round your intermediate calculations and final answers to 2 decimal places.)

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Cost per unit

Stoneham Manufacturing estimated its product costs and volume of production for 2019 by quarter as follows Second Third First Quarter $ 96,000 Fourth Quarter Quarter Quarter Direct raw materials Direct labor Manufacturing overhead Total production costs Expected units produced 48,000 $144,000 72,000 28,800 57,600 86,400 43,200 48,000 _100,800 172,80086,400 $201,600 $177,600 $403,200 $201,600 16,000 8,000 24,000 12,000 Stoneham Company sells a souvenir item at various resorts across the country. Its management uses the product's estimated quarterly cost to determine the selling price of its product. The company expects a large variance in demand for the product between quarters due to its seasonal nature. The company does not expect overhead costs, which are predominately fixed, to vary significantly as to production volume or with amounts for previous years. Prices are established by using a cost-plus pricing strategy. The company finds variations in short-term unit cost confusing to use. Unit cost variations complicate pricing decisions and many other decisions for which cost is a consideration Required a. Based on estimated total production cost, determine the expected quarterly cost per unit for Stoneham's product. b-1. Calculate the predetermined overhead rate b-2. Calculate the unit cost per quarter based on the predetermined overhead rate