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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

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 55,000 machine-hours would be required for the periods estimated level of production. It also estimated $940,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour.

Because Delph has two manufacturing 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:

Molding Fabrication Total
Machine-hours 24,000 31,000 55,000
Fixed manufacturing overhead cost $ 720,000 $ 220,000 $ 940,000
Variable manufacturing overhead cost per machine-hour $ 5.00 $ 2.00

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 $ 370,000 $ 320,000 $ 690,000
Direct labor cost $ 220,000 $ 120,000 $ 340,000
Machine-hours 14,000 10,000 24,000

Job C-200 Molding Fabrication Total
Direct materials cost $ 260,000 $ 300,000 $ 560,000
Direct labor cost $ 160,000 $ 240,000 $ 400,000
Machine-hours 10,000 21,000 31,000

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

Required: 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 150% 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?

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