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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 company estimated that 51,000

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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 company estimated that 51,000 machine-hours would be required for the period'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 $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: Molding Fabrication Total Machine-hours 20 , 000 31, 000 51,000 02:07 Fixed manufacturing overhead cost $ 760, 000 $ 260, 000 $ 1, 020, 000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 2.00 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: Job D-70 Molding Fabrication Total Direct materials cost $ 370, 000 $ 320,000 $ 690, 000 Direct labor cost $ 240, 000 $ 160 , 000 $ 400 , 000 Machine-hours 16 , 000 4, 000 20, 000 Job C-200 Molding Fabrication Total Direct materials cost $ 280, 000 $ 200, 000 $ 480 , 000 Direct labor cost $ 140,000 220, 000 S 360, 000 Machine-hours 4,000 27, 000 31, 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

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