Baird Manufacturing Company produced 2,800 units of inventory in January year 2. It expects to produce an additional 9,800 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,600 units. Direct materials and direct labor costs are $74 and $66 per unit, respectively. Baird expects to incur the following manufacturing overhead costs during the year 2 accounting period.

Production supplies $ 6,000

Supervisor salary 189,000

Depreciation on equipment 143,000

Utilities 28,000

Rental fee on manufacturing facilities 314,400

Required

Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units.

Determine the cost of the 2,800 units of product made in January.