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Delp company used a job-order costing system and has two manfacturing departments--Molding and Fabrication. The company provided the following estimates at the beginning of the
Delp company used a job-order costing system and has two manfacturing departments--Molding and Fabrication. The company provided the following estimates at the beginning of the year:
Total 68,000 Molding Machine-hours 29,000 Fixed manufacturing overhead costs $ 770,000 Variable manufacturing overhead per machine-hour $ 6.10 Fabrication 39,000 $ 280,000 $ 1,050,000 $ 6.10 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 $ 379,000 $ 324,000 $ 703,000 $ 240,000 $ 170,000 $ 410,000 24,000 5,000 29,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 230,000 $ 230,000 $ 460,000 $ 130,000 $ 290,000 $ 420,000 5,000 34,000 39,000 Delph had no overapplied or underapplied manufacturing overhead during the year. Assume Delph uses a plantwide overhead rate based on machine-hours. Required: 1-a. Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per MH 1-5. Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your Intermediate calculations to 2 decimal places.) Total manufacturing cost Job D-70 Job C-200 1-c. If Delph establishes bid prices that are 140% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.) Bid price Job D-70 Job C-200 Step by Step Solution
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