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Please explain how to find machine hours related. Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done
Please explain how to find machine hours related.
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 10,500 1,010 220 $11,800 $ 4,400 Shorts 4,100 830 130 $ 7,000 $2,600 Total 14,600 1,840 350 $18,800 $ 7,000 $ 22, 196 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 Related to: $3,910 Machine-hours 2,890 Materials 9,334 Machine-hours 2,562 Materials 3,500 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-relat overhead costs and materials costs to allocate materials-related overhead costs. (Round "Machine-related overhea decimal places and enter "Materials related overhead" rate as a whole percentage (i.e., 32).) 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 Machine-hour related per hour Materials related Required A Required B > 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 unitStep by Step Solution
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