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:

	Molding	Fabrication	Total
Machine-hours	23,000	31,000	54,000
Fixed manufacturing overhead cost	$ 720,000	$ 200,000	$ 920,000
Variable manufacturing overhead cost per machine-hour	$ 3.00	$ 2.00

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob 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	$ 160,000	$ 380,000
Machine-hours	16,000	7,000	23,000

Job C-200	Molding	Fabrication	Total
Direct materials cost	$ 220,000	$ 240,000	$ 460,000
Direct labor cost	$ 160,000	$ 240,000	$ 400,000
Machine-hours	7,000	24,000	31,000

Exercise 2-15 (Algo) Part 2

2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate 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 Delphs cost of goods sold for the year?