Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Delph Company uses a job - order costing system with a plantwide predetermined overhead rate based on machine - hours. At the beginning of the

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 56,000 machine-hours would be required for the period's
estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period
and varlable manufacturing overhead of $4.00 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:
During the year, the company had no beginning or ending Inventorles 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:
Delph had no underapplied or overapplied manufacturing overhead during the year.
quired:
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?
Complete the question by entering your answers in the tabs given below.
ssume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing
ost assigned to Job D-70 and Job C-200.
ote: Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel

3rd Edition

0470377852, 978-0470377857

More Books

Students explore these related Accounting questions