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 Machine-hours 34,000 44,000 78,000 Fixed manufacturing overhead costs $ 710,000 $ 230,000 $ 940,000 Variable manufacturing overhead cost per machine-hour $ 5.90 $ 5.90 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 $ 375,000 $ 321,000 $ 696,000 Direct labor cost $ 200,000 $ 140,000 $ 340,000 Machine-hours 25,000 9,000 34,000 Job C-200: Molding Fabrication Total Direct materials cost $ 290,000 $ 270,000 $ 560,000 Direct labor cost $ 160,000 $ 220,000 $ 380,000 Machine-hours 9,000 35,000 44,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses 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 140% 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?
Calculate pre determined overhead rate:
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