Thornton Manufacturing Company produced 1,700 units of inventory in January Year 2. It expects to produce an additional 9,100 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 10,800 units. Direct materials and direct labor costs are $84 and $64 per unit, respectively. Thornton expects to incur the following manufacturing overhead costs during the Year 2 accounting period.

Production supplies$ 6,600Supervisor salary182,000Depreciation on equipment125,000Utilities26,000Rental fee on manufacturing facilities230,100

Required

1. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units.
2. Determine the cost of the 1,700 units of product made in January.