Answer:
Total production cost= $266,380
Explanation:
<u>First, we need to calculate the total estimated overhead costs:</u>
total estimated overhead costs= 20,000 + 160,000 + 75,000 + 20,000
total estimated overhead costs= $275,000
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 275,000 / 16,000
Predetermined manufacturing overhead rate= $17.19 per unit
<u>Finally, we can calculate the total production cost of the 2,000 units made in January:</u>
Total production cost= total unitary cost*number of units
Total production cost= (64 + 52 + 17.19) * 2,000
Total production cost= $266,380
