Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 50,000 machine-hours would be required for the period's estimated level of production. It also estimated $910,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.80 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following Information to enable calculating departmental overhead rates: Machine-hour's Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 20,000 $ 700,000 $ 3.00 Fabrication TOLS1 30,000 $ 210,000 $ 1.00 50,000 $ 910,000 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 Molding Fabrication Total Direct materials cost $ 375,000 $ 325,000 Direct labor cost Machine-hour's $ 200,000 14,000 $ 160,000 Job C-200 Molding Direct materials cost $ 300,000 $ 250,000 6.000 Fabrication $ 700,000 $360,000 20,000 Total $ 550,000 Direct labor cost Machine-hour's $ 175,000 6,000 $ 225.000 24,000 $ 400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours. a. Compute the plantwide predetermined overhead rate. 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 costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 50,000 machine-hours would be required for the period's estimated level of production. It also estimated $910,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.80 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following Information to enable calculating departmental overhead rates: Machine-hour's Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 20,000 $ 700,000 $ 3.00 Fabrication TOLS1 30,000 $ 210,000 $ 1.00 50,000 $ 910,000 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 Molding Fabrication Total Direct materials cost $ 375,000 $ 325,000 Direct labor cost Machine-hour's $ 200,000 14,000 $ 160,000 Job C-200 Molding Direct materials cost $ 300,000 $ 250,000 6.000 Fabrication $ 700,000 $360,000 20,000 Total $ 550,000 Direct labor cost Machine-hour's $ 175,000 6,000 $ 225.000 24,000 $ 400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours. a. Compute the plantwide predetermined overhead rate. 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 costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year?
Expert Answer:
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259103261
4th Canadian edition
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
Posted Date:
Students also viewed these accounting questions
-
Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
-
New-car sales of a dealer during the past year are shown in the following table, along with monthly seasonal relatives. Month Units Sold Seasonal Relative Jan 710 1.12 Feb 644 1.12 Mar 674 1.00 Apr...
-
20 = $87.5 million CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavoured liqueur. wwwwww Suppose the firm faces a tax rate of 30% and collects the following...
-
How many moles of carbon dioxide, CO2, are in a 22 gram sample of the compound?
-
Reaction of benzanilide with chlorine in acetic acid yields a mixture of two monochloro derivatives formed by electrophilic aromatic substitution. Suggest reasonable structures for these two isomers....
-
A Sampling Distribution for Average Salary of NFL Players Use StatKey or other technology to generate a sampling distribution of sample means using a sample of size \(n=5\) from the YearlySalary...
-
You have \($130\) to spend at August back-to-school sales. The tennis shoes you really want cost \($105\) plus 7 percent sales tax. Online, the shoes cost \($95.99\), with 11 percent shipping charges...
-
Linden Company manufactures and sells a single product. Cost data for the product follow: Variable costs per unit: Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . $ 6 Direct labor ....
-
On January 1, 2021, Blue Company acquired 70% of the stocks of Green Company for P3,000,000. On this date, the subsidiary had P1,200,000 Capital Stock and P600,000 Retained Earnings. Blue Company...
-
7 2 points 1. Use the accounting equation to compute the missing financial statement amounts. 2. Use the expanded accounting equation to compute the missing financial statement amounts. Complete this...
-
Perfect Pet Food, Inc., is a premier manufacturer of both canned and dry food for cats and dogs of all ages and breeds.Located in Kansas City, Kansas, the firm has recently expanded its service area...
-
Round the number to the given place value. 43.4299 Whole number STEP 1: If the digit to the right of the given place value is less than 5, that digit and all digits to the right are dropped. If the...
-
On January 1 , Year 1 , Sheffield Co . issued bonds with a face value of $ 2 6 0 , 0 0 0 , a term of ten years, and a stated interest rate of 5 % . The bonds were issued at 1 0 4 , and interest is...
-
Image transcription text Complete the table by calculating the missing term in each row using the units indicated in the highlighted cells. Qin Qout Win Wout E1 E2 KJ 0 150 kJ 0.27 k Wh 3586 kJ 8623...
-
Adding a stock that has zero correlation with your portfolio does not add to your diversification. True or false
-
On September 1, Eden County Club had an inventory of 40 golf shirts at a cost of $17 each. The company uses a perpetual inventory system. During September, the following transactions occurred. ...
-
Time Travel Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $25,000 to help organize the corporation. Time Travel also issued...
-
3. Summey Building Systems built a condominium project in Myrtle Beach, South Carolina. The project included an adjacent parking deck. Shortly after Summey relinquished control to the condominium...
-
6. While in her second year at the Juilliard School of Music in New York City, Ann Rylands had a chance to borrow for one month a rare Guadagnini violin, made in 1768. She returned the violin to the...
-
4. Kenmart Realty sued to evict Mr. and Ms. Alghalabio for nonpayment of rent and sought the unpaid monies, totaling several thousand dollars. In defense, the Alghalabios claimed that their apartment...
Study smarter with the SolutionInn App