Question
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 23,000 $ 720,000 $ 5.00 Fabrication 31,000 $ 260,000 $ 1.00 Total 54,000 $980,000 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: $ 120,000 7,000 $ 340,000 23,000 Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $220,000 16,000 Fabrication $ 320,000 Total $ 690,000 Job C-200 Molding Direct materials cost Direct labor cost Machine-hours $ 240,000 $ 100,000 7,000 $ 200,000 Fabrication $ 280,000 24,000 Total $440,000 $ 380,000 31,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. ok a. Compute the departmental predetermined overhead rates. k ences 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?
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