Kenneth Corporation expects to incur indirect overhead costs of $171,600 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2013 is as follows.

	January	February	March	April
Estimated production in units	5,500	8,500	4,900	7,500

a.

Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year.

Predetermined overhead rate:________per unit

b.	Allocate overhead costs to each month using the overhead rate computed in Requirement a. January:______ Feburary:______ March:______ April:_______ Total:____

Calculate the total cost per unit for each month using the overhead allocated in Requirement b.

Month Number of units Expected cost Overhead Direct costs Total cost Cost per unit January 5,500 0 February 8,500 0 March 4,900 0 April 7,500