Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 58,000 machine-hours would be required for the periods estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per machine-hour.

Because Delph has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates:

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?

	Molding	Fabrication	Total
Machine-hours	23,000	35,000	58,000
Fixed manufacturing overhead cost	$ 700,000	$ 280,000	$ 980,000
Variable manufacturing overhead cost per machine-hour	$ 3.00	$ 1.50

Job D-70	Molding	Fabrication	Total
Direct materials cost	$ 370,000	$ 320,000	$ 690,000
Direct labor cost	$ 240,000	$ 120,000	$ 360,000
Machine-hours	15,000	8,000	23,000

Job C-200	Molding	Fabrication	Total
Direct materials cost	$ 260,000	$ 260,000	$ 520,000
Direct labor cost	$ 160,000	$ 260,000	$ 420,000
Machine-hours	8,000	27,000	35,000