Owl-Eye Radiologists (OR) does various types of diagnostic imaging. Radiologists perform tests using sophisticated equipment. OR's management wants to compute the costs of performing tests for two different types of patients: those who are hospitalized (including those in emergency rooms) and those who are not hospitalized but are referred by physicians. The data for June for the two categories of patients follow.

	Hospital Patients			Other Patients			Total
Units (i.e., procedures) produced		640			880			1,520
Equipment-hours used		220			130			350
Direct labor-hours		450			160			610
Direct labor costs	$	36,000		$	9,600		$	45,600
Overhead costs							$	47,040

The accountant first assigns overhead costs to two pools: overhead related to equipment-hours and overhead related to labor-hours. The analysis of overhead accounts by the cost accountant follows.

Account	Amount			Related to:
Utilities	$	4,850		Equipment-hours
Supplies		12,560		Labor-hours
Indirect labor and supervision		17,330		Labor-hours
Equipment depreciation and maintenance		8,890		Equipment-hours
Miscellaneous		3,410		Equipment-hours

a. Compute the predetermined overhead rates assuming that Owl-Eye Radiologists uses equipment-hours to allocate equipment-related overhead costs and labor-hours to allocate labor-related overhead costs.

b. Compute the total costs of production and the cost per unit for each of the two types of patients undergoing tests in June.

	Overhead Rate
Equipment-related		per hour
Labor-related		per hour

Compute the total costs of production and the cost per unit for each of the two types of patients undergoing tests in June.

	Hospital Patients	Other Patients
Total cost
Cost per unit