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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 the
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 24,000 $ 720,000 $ 3.00 Fabrication 31,000 $ 240,000 $ 2.00 Total 55,000 $ 960,000 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: Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 14,000 Fabrication $ 320,000 $ 140,000 10,000 Total $ 690,000 $ 350,000 24,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding $ 300,000 $ 140,000 10,000 Fabrication $ 280,000 $ 220,000 21,000 Total $ 580,000 $ 360,000 31,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 (Algo) Part 2 2. Assume Delph chooses to combine its departmental rates from requirement 1 into 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 costs, 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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