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Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on operations and costs for
Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on operations and costs for March follow. Total 15,600 1,750 Jerseys 9,900 980 240 $11,300 $ 4,800 Units produced Machine-hours used Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Shorts 5,700 770 110 $7,900 $2,200 350 $19,200 $ 7,000 $21,651 Management asks the firm's 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. Account Utilities Supplies Machine depreciation and maintenance Purchasing and storing materials Miscellaneous Amount $3,980 2,730 8,805 2,646 3,490 Related to: Machine-hours Materials Machine-hours Materials Machine-hours Required: a. Compute the predetermined overhead rates assuming that Donovan 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 for March. Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rates assuming that Donovan uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs. (Round "Machine-related overhead" rate to 2 decimal places and enter "Materials related overhead" rate as a whole percentage (i.e., 32).) Overhead Rate per hour Machine-hour related Materials related % Complete this question by entering your answers in the tabs below. Required A Required B Compute the total costs of production and the cost per unit for each of the two products for March. (Do not round intermediate calculations. Round your "Cost per unit" to 2 decimal places.) Jerseys Shorts Total cost Cost per unit
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