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 $57,000$ machine$-$hours would be required for the period$$s estimated level of production. It also estimated $$1,000,000$ of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $$3\mathrm{.}00$ 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:

Molding Fabrication Total

Machine$-$hours $24,00033,00057,000$

Fixed manufacturing overhead cost $ $780,000$ $ $220,000$ $ $1,000,000$

Variable manufacturing overhead cost per machine$-$hour $ $3\mathrm{.}00$ $ $2\mathrm{.}00$

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 $ $370,000$ $ $320,000$ $ $690,000$

Direct labor cost $ $220,000$ $ $140,000$ $ $360,000$

Machine$-$hours $14,00010,00024,000$

Job C$-200$ Molding Fabrication Total

Direct materials cost $ $260,000$ $ $300,000$ $ $560,000$

Direct labor cost $ $120,000$ $ $260,000$ $ $380,000$

Machine$-$hours $10,00023,00033,000$

Delph had no underapplied or overapplied manufacturing overhead during the year.

Exercise $2-15($Algo$)$ Part $1$

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 $57,000$ machine$-$hours would be required for the period$$s estimated level of production. It also estimated $$1,000,000$ of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $$3\mathrm{.}00$ 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:

Molding Fabrication Total

Machine$-$hours $24,00033,00057,000$

Fixed manufacturing overhead cost $ $780,000$ $ $220,000$ $ $1,000,000$

Variable manufacturing overhead cost per machine$-$hour $ $3\mathrm{.}00$ $ $2\mathrm{.}00$

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 $ $370,000$ $ $320,000$ $ $690,000$

Direct labor cost $ $220,000$ $ $140,000$ $ $360,000$

Machine$-$hours $14,00010,00024,000$

Job C$-200$ Molding Fabrication Total

Direct materials cost $ $260,000$ $ $300,000$ $ $560,000$

Direct labor cost $ $120,000$ $ $260,000$ $ $380,000$

Machine$-$hours $10,00023,00033,000$

Delph had no underapplied or overapplied manufacturing overhead during the year.

Exercise $2-15($Algo$)$ Part $2$

Required:

$2.$ 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 $150\%$ of total manufacturing cost, 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?