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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 29,000 39,000 68,000
Fixed manufacturing overhead costs $ 760,000 $ 240,000 $ 1,000,000
Variable manufacturing overhead cost per machine-hour $ 6.00 $ 6.00

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 $ 377,000 $ 320,000 $ 697,000
Direct labor cost $ 210,000 $ 140,000 $ 350,000
Machine-hours 20,000 9,000 29,000

Job C-200: Molding Fabrication Total
Direct materials cost $ 290,000 $ 270,000 $ 560,000
Direct labor cost $ 140,000 $ 280,000 $ 420,000
Machine-hours 9,000 30,000 39,000

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

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 140% 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?

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