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Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of
Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding Fabrication Total 20,000 $ 720,000 32,000 $260,000 52,000 $980,000 $ 3.00 $ 2.00 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 Direct materials cost Direct labor cost Machine-hours Job C-200 Molding $ 370,000 $220,000 16,000 Total $ 690,000 $340,000 20,000 Fabrication $ 320,000 $ 120,000 4,000 Direct materials cost Molding. $ 260,000 Direct labor cost Machine-hours $ 420,000 Delph had no underapplied or overapplied manufacturing overhead during the year. $ 140,000 4,000 Fabrication $ 240,000 $ 280,000 28,000 Total $ 500,000 32,000 Required: 1. 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. Required 1A Required 18 Required 1C Required 1D Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the departmental predetermined overhead rates. (Round the final answers to 2 decimal places.) Predetermined overhead Molding Department Fabrication Department rates per MH per MH
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