Mets Products produces baseball caps and T-shirts. Most of the production is done by machine....

80.2K

Verified Solution

Question

Accounting

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 10,600 4,900 15,500
Machine-hours used 1,020 820 1,840
Direct labor-hours 220 130 350
Direct materials costs $ 12,000 $ 8,700 $ 20,700
Direct labor costs $ 4,400 $ 2,600 $ 7,000
Manufacturing overhead costs $ 23,322

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 $ 4,020 Machine-hours
Supplies 2,900 Materials
Machine depreciation and maintenance 9,642 Machine-hours
Purchasing and storing materials 3,310 Materials
Miscellaneous 3,450 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).)

Overhead Rate
Machine related overhead per hour
Materials related overhead 30 %
(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.)

Baseball Caps T-shirts
Total cost
Cost per unit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students