Mets Products produces baseball caps and T-shirts. Most of the production is done by machine. Data on operations and costs for October follow:

Management asks the firms cost accountant to compute product costs. The accountant first assigns overhead costs to two pools: overhead related to direct materials and overhead related to machine-hours.
The analysis of overhead accounts by the cost accountant follows:

Required
a. Compute the predetermined overhead rates assuming that Mets Products uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs.
b. Compute the total costs of production and the cost per unit for each of the two products forOctober.

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Baseball Caps T-Shirts Total Units produced Machine-hours used. Direct labor-hours Direct materials costs. Direct labor costs. Manufacturing overhead costs. 10,000 1,000 200 $12,000 $4,000 15,000 1,800 320 $8,000 $20,000 $2,400 6,400 $22,200 5,000 800 120 Account AmountRelated to: Purchasing and storing materials. ......3,200 Miscellaneous Materials