Question
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
Total Machine-hours 21,000 35,000 56,000
Fixed manufacturing overhead costs $720,000 $280,000 $1,000,000
Variable manufacturing overhead cost per machine-hour $5.00 $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 $240,000 $160,000 $400,000
Machine-hours 17,000 4,000 21,000
Job C-200: Molding Fabrication Total
Direct materials cost $ 280,000 $ 260,000 $ 540,000
Direct labor cost $ 140,000 $ 240,000 $ 380,000
Machine-hours 4,000 31,000 35,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
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.)
Molding Department per MH?
Fabrication Department per MH?
b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.)
Job D-70?
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? (Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount.)
Job D-70
Job C-200
d. What is Delph's cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places. Round your final answer to nearest whole dollar amount.)
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