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		32,000		42,000		74,000
Fixed manufacturing overhead costs	$	770,000	$	270,000	$	1,040,000
Variable manufacturing overhead cost per machine-hour	$	5.40	$	5.40

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	$	376,000	$	329,000	$	705,000
Direct labor cost	$	240,000	$	140,000	$	380,000
Machine-hours		23,000		9,000		32,000

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	210,000	$	290,000	$	500,000
Direct labor cost	$	120,000	$	280,000	$	400,000
Machine-hours		9,000		33,000		42,000

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

Exercise 2-15 Part 2

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 120% 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?