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Delph Company uses job - order costing with a plantwide predetermined overhead rate based on machine - hours. At the beginning of the year, the

Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-
hours. At the beginning of the year, the company estimated that 57,000 machine-hours would be required
for the period's estimated level of production. It also estimated $1,080,000 of fixed manufacturing overhead
cost for the coming period and variable manyfacturing overhead of $4.00 per machine-hour.
Because Delph has two manufacturing departments-Molding and Fabrication - it 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
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:
Exercise 2-17(Algo) Part 1
Required:
Assume Delph uses plantwide predetermined overhead rates based on machinehol
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 lob
D-70 and Job C-200?
d. What is Delph's cost of goods sold for the year?
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