Perez Manufacturing Company produced 2,900 units of inventory in January, Year 2. It expects to produce an additional 8,900 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 11,800 units. Direct materials and direct labor costs are $83 and $72 per unit, respectively. Perez expects to incur the following manufacturing overhead costs during the year 2 accounting period.

Production supplies	$	6,400
Supervisor salary		174,000
Depreciation on equipment		132,000
Utilities		16,000
Rental fee on manufacturing facilities		267,500

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 2,900 units of product made in January.

Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per unit

Determine the cost of the 2,900 units of product made in January.

	Allocated Cost
Indirect overhead costs
Direct materials
Direct labor
Total