Question: Overhead Cost Allocation for Durden Soap

Durden Soap incurs the following monthly indirect costs, which are considered fixed costs:

Utilities: $$120$

Indirect Labor: $$340$

Cleaning: $$610$

Rent: $$500$

Employee Insurance: $$220$

Total Monthly Fixed Costs: $$1,790$

Annual Fixed Costs $($Total x $12$ months$)$: $$21,480$

Durden Soap expects to manufacture $76,000$ units during the upcoming year. In March, the company manufactured $2,100$ units, and in April, it manufactured $6,375$ units.

Calculate the amount of overhead cost allocated to the production of units in March and April. Show all your calculations and explain your reasoning.