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		21,000		33,000		54,000
Fixed manufacturing overhead costs	$	700,000	$	200,000	$	900,000
Variable manufacturing overhead cost per machine-hour	$	4.00	$	1.50

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	$	120,000	$	340,000
Machine-hours		16,000		5,000		21,000

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	240,000	$	220,000	$	460,000
Direct labor cost	$	160,000	$	260,000	$	420,000
Machine-hours		5,000		28,000		33,000

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

rev: 07_28_2020_QC_CS-217627, 09_05_2020_QC_CS-224324

Exercise 3-15 (Algo) Part 2

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 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?