Finch Manufacturing Company produced 1,400 units of inventory in January year 2. It expects to produce an additional 8,800 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 10,200 units. Direct materials and direct labor costs are $80 and $58 per unit, respectively. Finch expects to incur the following manufacturing overhead costs during the year 2 accounting period.

Production supplies	$	5,300
Supervisor salary		187,000
Depreciation on equipment		130,000
Utilities		24,000
Rental fee on manufacturing facilities		186,650

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 1,400 units of product made in January.

A) Predetermined overhead rate: ______ per unit

B) Allocated Cost

Indirect overhead costs ___________

Direct materials ____________

Direct labor ___________

Total $___________