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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. Units produced Machine-hours used Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Jerseys Shorts Total 32,00 16,00 48.00 6.eee 4.8ee 1 e.see 1.2ee7281.92e $96. eee $64, see $160.ece $32,300 $19,200 $ 52,eee $266,400 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 Amount Related to: $48.000 Machine. Account Utilities Supplies Machine depreciation and maintenance Purchasing and storing materials Miscellaneous 0 hours 33,600 Materials Machine- 105,600 hours 38,400 Materials 40.8 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 ses machine hours to allocate machine related overhead costs and materials costs to allocate materials related overhead costs. (Enter Materials related overhead as a whole percentage (le, 32).) Overhead Rate Machine-hour rested Marted Required A Required B Compute the total costs of production and the cost per unit for each of the two products for March. (Round "Cost per unit" to 2 decimal places.) Jerseys Shorts Total cost Cost per unit
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