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 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,000,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour. Because Delph has two manufacturing departments-Molding 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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 21,000 Fabrication 35,000 $ 740,000 $ 5.00 $ 260,000 $ 2.00 Total 56,000 $ 1,000,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs- Job D-70 and Job C-200. It provided the following information related to those two jobs: Total $ 340,000 21,000 Job D-70 Direct materials cost Direct labor cost Machine-hours $ 220,000 15,000 Molding $ 370,000 Fabrication $ 320,000 $ 120,000 6,000 $ 690,000 Job C-200 Direct materials cost Molding $ 260,000 Fabrication Direct labor cost Machine-hours $ 180,000 6,000 $ 280,000 $ 240,000 29,000 Total $ 540,000 $ 420,000 35,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses plantwide predetermined overhead rates 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 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? S < Prev 1 2 of 2 Next >