Determine the cost of the units of product made in january

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Solomon Manufacturing Company produced 2,000 units of inventory in January 2018. It expects to produce an additional 8,700 units during the remaining 11 months of the year. In other words, total production for 2018 is estimated to be 10,700 units. Direct materials and direct labor costs are $71 and $64 per unit, respectively.

Solomon expects to incur the following manufacturing overhead costs during the 2018 accounting period:

Production supplies$6,000

Supervisor salary 184,000

Depreciation on equipment 134,000

Utilities 29,000

Rental fee on manufacturing facilities 211,425

Required

Problem 1: Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units.

Problem 2: Determine the cost of the 2,000 units of product made in January.

Reference no: EM132804664

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