Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production...

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Accounting

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:

Jerseys Shorts Total
Units produced 10,100 4,800 14,900
Machine-hours used 990 850 1,840
Direct labor-hours 210 140 350
Direct materials costs $ 11,300 $ 8,800 $ 20,100
Direct labor costs $ 4,200 $ 2,800 $ 7,000
Manufacturing overhead costs $ 23,309

Management asks the firms 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 $ 3,940 Machine-hours
Supplies 2,790 Materials
Machine depreciation and maintenance 10,070 Machine-hours
Purchasing and storing materials 3,039 Materials
Miscellaneous 3,470 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. (Round "Machine-related overhead" rate to 2 decimal places and "Materials related overhead" rate as a whole percentage (i.e., 32).)

Machine hours related: __________ per hour

Materials related: ___________%

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.)

Jersey | Shorts

Total costs:

Cost per unit:

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