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 | 20,000 | 30,000 | 50,000 | |||
| Fixed manufacturing overhead costs | $ | 700,000 | $ | 210,000 | $ 910,000 | |
| Variable manufacturing overhead per machine-hour | $ | 3.00 | $ | 3.00 | ||
| 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 | $ | 375,000 | $ | 325,000 | $ | 700,000 |
| Direct labor cost | $ | 200,000 | $ | 160,000 | $ | 360,000 |
| Machine-hours | 14,000 | 6,000 | 20,000 | |||
| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 300,000 | $ | 250,000 | $ | 550,000 |
| Direct labor cost | $ | 175,000 | $ | 225,000 | $ | 400,000 |
| Machine-hours | 6,000 | 24,000 | 30,000 | |||
Delph had no overapplied or underapplied manufacturing overhead during the year.
| Assume Delph uses a plantwide overhead rate based on machine-hours. |
| 1-a. | Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.) |
| 1-b. | Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) |
| 1-c. | If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.) |
| 1-d. | What is Delphs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
| Assume Delph uses departmental overhead rates based on machine-hours |
| 2-a. | Compute the predetermined departmental overhead rates. |
| 2-b. | Compute the total manufacturing costs assigned to Job D-70 and Job C-200. |
| 2-c. | If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? |
| 2-d. | What is Delphs cost of goods sold for the year? |
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