Comparing job cost using a plant wide and departmental M-OH rates Smithson 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: No Video Smithson 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: Fixed manufacturing overhead costs Molding $ 800,000 $ Fabrication Total Machine-Hours 20,000 300,000 30,000 Variable manufacturing OH per machine-hour 5.00 $ 5.00 Machine-hours....... Fixed manufacturing overhead costs.. Variable manufacturing overhead per machine-hour..... Molding Fabrication Total 20,000 30,000 50,000 $800,000 $300,000 $1,100,000 $5.00 $5.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job D-75 and Job C-100. It provided the following information related to those two jobs: During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job D-75 and Job C-100. It provided the following information related to those two jobs: Job D-75: Direct materials cost.. Direct labor cost.. Machine-hours...... JOB D-75 Direct material cost Direct labor cost Machine-hours Molding 375,000 $ $ 200,000 15,000 Fabrication 325,000 160,000 5,000 Total JOB C-100 Direct material cost Molding 300,000 $ Fabrication Total Job C-100: Direct labor cost Machine-hours $ 175,000 $ 5,000 250,000 225,000 25,000 Direct materials cost. Direct labor cost Machine-hours... Molding Fabrication Total $375,000 $325,000 $700,000 $200,000 $160,000 $360,000 15,000 5,000 20,000 Molding Fabrication Total $300,000 $250,000 $550,000 $175,000 $225,000 $400,000 5,000 25,000 30,000 1) Calculte the cost of each job using a single plantwide predetermined OH rate: Estimated fixed overhead cost Estimated machine-hours Fixed POHR Per machine-hour Variable MOH per machine hour Calculate the Fixed POHR Caclulate the Total POHR Total POHR (Fixed + Variable) Estimated Job Cost Direct materials Direct labor Manufacturing overhead applied Total cost Estimated Bid Price (150% of cost) D-75 C-100 Required: 1. Assume Smithson uses a plantwide overhead rate based on machine- hours. a. Compute the predetermined plantwide overhead rate. b. Compute the total manufacturing costs assigned to Job D-75 and Job C-100. c. If Smithson establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? d. What is Smithson's cost of goods sold for the year? 2. Assume Smithson uses departmental overhead rates based on machine- hours. a. Compute the predetermined departmental overhead rates. b. Compute the total manufacturing costs assigned to Job D-75 and Job C-100. c. If Smithson establishes bid prices that are 150% of total manufacturing what bid price would it have established for Job D-75 and Job Calculate the POHRs for the Molding 007 at is Smithson's cost of goods sold for the year? 2) Calculte the cost of each job using departmental predetermined OH rates: and Fabrication departments. Molding Fabrication Estimated fixed overhead cost Estimated machine-hours Fixed POHR Per machine-hour Variable MOH per machine hour Total POHR (Fixed + Variable) Estimated Job Cost Direct materials Direct labor MOH applied - Molding MOH applied - Fabrication Total cost (COGS) Estimated Bid Price (150% of cost) D-75 C-100 Calculate the Fixed POHR Caclulate the Total POHR Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?