Benson Manufacturing Company produced 2,400 units of inventory in January Year 2. It expects to produce an additional 9,700 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 12,100 units. Direct materials and direct labor costs are $80 and $65 per unit, respectively. Benson expects to incur the following manufacturing overhead costs during the Year 2 accounting period.

Production supplies $ 6,100

Supervisor salary 177,000

Depreciation on equipment 133,000

Utilities 24,000

Rental fee on manufacturing facilities 258,850

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 2,400 units of product made in January.