Problem 6-44 Two-Stage Allocation and Product Costing (LO 6-5)

Mets Products produces baseball caps and T-shirts. Most of the production is done by machine. Data on operations and costs for October follow:

	Baseball Caps			T-Shirts			Total
Units produced		9,700			4,600			14,300
Machine-hours used		1,040			750			1,790
Direct labor-hours		240			120			360
Direct materials costs	$	12,200		$	7,100		$	19,300
Direct labor costs	$	4,800		$	2,400		$	7,200
Manufacturing overhead costs							$	23,718

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	Amount			Related to:
Utilities	$	3,960		Machine-hours
Supplies		2,790		Materials
Machine depreciation and maintenance		10,202		Machine-hours
Purchasing and storing materials		3,386		Materials
Miscellaneous		3,380		Machine-hours

Required:
(a)	Compute the predetermined overhead rates assuming that Mets Products uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs. (Round your machine-related overhead rate to 2 decimal places. Enter your materials related overhead rate as a whole percentage (i.e., 32).)

Machine Related overhead (? per hour)

Machine Related overhead (? %)

(b)	Compute the total costs of production and the cost per unit for each of the two products for October. (Do not round intermediate calculations. Round your cost per unit to 2 decimal places.)

Total Cost (basball caps)

Total Cost (t-shirts)

Cost per unit (baseball caps)

Cost per unit (t-shirts)