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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

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 1

Required:

1. Assume Delph uses 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 cost, 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?

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