Ch. 2 Q 25

2. 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 140% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delphs cost of goods sold for the year?

Required information (The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding 29,000 $ 770,000 $ 5.40 Fabrication 39,000 $ 280,000 $ 5.40 Total 68,000 $1,050,000 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 Fabrication Total $ 378,000 $ 323,000 $ 701,000 $ 230,000 $ 130,000 $360,000 19,000 10,000 29,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 250,000 $ 280,000 $ 530,000 $ 150,000 $ 270,000 $ 420,000 10,000 29,000 39,000 Delph had no underapplied or overapplied manufacturing overhead during the year