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	21,000	31,000	52,000
Fixed manufacturing overhead cost	$ 780,000	$ 280,000	$ 1,060,000
Variable manufacturing overhead cost per machine-hour	$ 3.00	$ 2.00

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	$ 370,000	$ 320,000	$ 690,000
Direct labor cost	$ 240,000	$ 140,000	$ 380,000
Machine-hours	15,000	6,000	21,000

Job C-200	Molding	Fabrication	Total
Direct materials cost	$ 240,000	$ 220,000	$ 460,000
Direct labor cost	$ 180,000	$ 260,000	$ 440,000
Machine-hours	6,000	25,000	31,000

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

rev: 07_21_2020_QC_CS-217627, 09_03_2020_QC_CS-225692

Exercise 2-15 (Algo) Part 1

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 Delphs cost of goods sold for the year?

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 Delphs cost of goods sold for the year?