Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company...
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Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 25,000 $ 720,000 $ 4.00 Fabrication 33,000 $ 280,000 $ 1.50 Total 58,000 $ 1,000,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 200,000 13,000 Fabrication $ 320,000 $ 140,000 12,000 Job C-200 Direct materials cost $ 260,000 Direct labor cost Machine-hours $ 140,000 12,000 Fabrication $ 220,000 $ 280,000 21,000 Molding Total $ 690,000 $ 340,000 25,000 Total $ 480,000 $ 420,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 25,000 $ 720,000 $ 4.00 Fabrication 33,000 $ 280,000 $ 1.50 Total 58,000 $ 1,000,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 200,000 13,000 Fabrication $ 320,000 $ 140,000 12,000 Job C-200 Direct materials cost $ 260,000 Direct labor cost Machine-hours $ 140,000 12,000 Fabrication $ 220,000 $ 280,000 21,000 Molding Total $ 690,000 $ 340,000 25,000 Total $ 480,000 $ 420,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?
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Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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