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 9,700 950 220 Account Utilities Supplies Machine depreciation and maintenance. Purchasing and storing materials Miscellaneous $12,700 $ 4,400 Shorts 4,100. 500 140 $7,900 $2,000 Total 13,000 1,750 360 $20,000 $ 7,200 $20,025 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 Amount Related to: $1,900 Machine-hours 2,790 Raterials Machine haurs 7,635 2,140 Materials 3,340 Machine-hours Required: e. 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.
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 9,700 950 220 Account Utilities Supplies Machine depreciation and maintenance. Purchasing and storing materials Miscellaneous $12,700 $ 4,400 Shorts 4,100. 500 140 $7,900 $2,000 Total 13,000 1,750 360 $20,000 $ 7,200 $20,025 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 Amount Related to: $1,900 Machine-hours 2,790 Raterials Machine haurs 7,635 2,140 Materials 3,340 Machine-hours Required: e. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 overbead casts
Account
Utilities
Supplies
Machine depreciation and maintenance
Purchasing and storing materials
Miscellaneous
Jerseys
9,700
950
220
Shorts
4,100.
500
140
$12,700
17,900
$ 4,400 $2,000
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.
THEY
Total
13,800
1,750
360
$20,000
$ 7,200
$20,025
Amount
Related to:
$1,900 Machine-hours
Materials
Machine hours
Materials
2,790
7,635
2,140
3,340 Machine-hours
Required:
e. 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 i
Compute the total costs of production and the cost per anit for each of the two products for March (De not und
termediate calculations. Round your "Cost per unit" ta 2 decimal places)
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