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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 9,400 1,000 250 $11,200 $ 5,000 Shorts 4,700 770 150 $7,700 $3,000 Total 14,100 1,770 400 $18,900 $ 8,000 $ 23,607 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 $3,970 2,800 9,612 3,815 3,410 Related to: Machine-hours Materials Machine-hours Materials Machine-hours Required: a. Compute the predetermined 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 Required A Required B Compute the predetermined overhead rates assuming that Donovan overhead costs and materials costs to allocate materials-related over decimal places and enter "Materials related overhead" rate as a whol Overhead Rate per hour Machine-hour related Materials related % Complete this question by entering your answers in Required A Required B Compute the total costs of production and the cost per unit intermediate calculations. Round your "Cost per unit" to 20 Jerseys Shorts Total cost Cost per unit
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