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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 52,000 machine-hours would be required for the perlod's estimated
level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable
manufacturing overhead of $3.00 per machine-hour.
Because Delph hos 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:
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:
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
Required: 1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours.
a. Compute the plantwide predetermined overheod rate.
b. Compute the total manufacturing cost assigned to Job D-70 and Jab 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?
Predetermined overhead rate
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