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 630 850 1,480 Equipment-hours used 230 140 370 Direct labor-hours 490 180 670 Direct labor costs $ 39,200 $ 10,800 $ 50,000 Overhead costs $ 50,960 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 $ 4,740 Equipment-hours Supplies 12,630 Labor-hours Indirect labor and supervision 20,200 Labor-hours Equipment depreciation and maintenance 10,020 Equipment-hours Miscellaneous 3,370 Equipment-hours

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

Total cost Hospital Patients Other Patients 74,480 $ 118.22 Cost per unit