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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 joborder costing with a plantwide predetermined overhead rate based on machine
hours. At the beginning of the year, the company estimated that machinehours would be required
for the period's estimated level of production. It also estimated $ of fixed manufacturing overhead
cost for the coming period and variable manyfacturing overhead of $ per machinehour.
Because Delph has two manufacturing departmentsMolding and Fabrication it is considering replacing
its plantwide overhead rate with departmental rates that would also be based on machinehours. The
company gathered the following information to enable calculating departmental overhead rates:
Machinehours
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machinehour
During the year, the company had no beginning or ending inventories and it started, completed, and sold
only two jobs Job D and job C It provided the following information related to those two jobs:
Exercise Algo Part
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 and Job C
c If Delph establishes bid prices that are of total manufacturing costs, what bid prices would it have established, for lob
D and Job C
d What is Delph's cost of goods sold for the year?
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