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:

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:

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.
b. Compute the total costs of production and the cost per unit for each of the two products for March.

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Jerseys Shorts Total 32,000 6,000 1,200 48,000 10,800 1,920 $64,000 $160,000 $19,200 $52,000 $266,400 16,000 4,800 720 Manufacturing overhead costs.... Account Amount Related to: Machine depreciation and maintenance... Purchasing and storing materials....... 33,600 Materials 105,600 38,400 Machine-hours Materials