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Baird Manufacturing Company produced 1,800 units of inventory in January 2018. It expects to produce an additional 9,500 units during the remaining 11 months of
Baird Manufacturing Company produced 1,800 units of inventory in January 2018. It expects to produce an additional 9,500 units during the remaining 11 months of the year. In other words, total production for 2018 is estimated to be 11,300 units. Direct materials and direct labor costs are $84 and $57 per unit, respectively. Baird expects to incur the following manufacturing overhead costs during the 2018 accounting period: Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities 5,300 177,000 127,000 18,000 240,525 Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 1,800 units of product made in January
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