Production workers for Zachary Manufacturing Company provided $420$ hours of labor in January and $580$ hours in February. Zachary expects to use $4,000$ hours of labor during the year. The rental fee for the manufacturing facility is $$4,000$ per month.

Required

Based on this information, how much of the rental cost should be allocated to the products made in January and to those made in February?

Required

Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.

Production supplies$ $5,000$Supervisor salary$184,000$Depreciation on equipment$141,000$Utilities$26,000$Rental fee on manufacturing facilities$168,700$

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 $1,300$ units of product made in January.