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		28,000		38,000		66,000
Fixed manufacturing overhead costs	$	780,000	$	300,000	$	1,080,000
Variable manufacturing overhead cost per machine-hour	$	6.00	$	6.00

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	$	326,000	$	701,000
Direct labor cost	$	240,000	$	140,000	$	380,000
Machine-hours		19,000		9,000		28,000

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	250,000	$	260,000	$	510,000
Direct labor cost	$	160,000	$	240,000	$	400,000
Machine-hours		9,000		29,000		38,000

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

Exercise 2-15 Part 1

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?