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Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on opRequired: a. Compute the predetermined overhead rates assuming that Donovan uses machine hours to allocate machine related ovRequired A Required B Compute the total costs of production and the cost per unit for each of the two products for March. (Ro

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Answer #1

1) Overhead rate :

Machine hour related = 194400/10800 = 18 per machine hour

Material related = 72000/160000 = 45%

2) Calculate total cost and cost per unit

Jerseys Shorts
Direct material 96000 64000
Direct labor 32800 19200
Material related overhead 43200 28800
Machine hour related overhead 108000 86400
Total Cost 280000 198400
Units 32000 16000
Cost per unit 8.75 12.40
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