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Don't understand what I did wrong for the first answer. I would appreciate some help understanding the correct way to do problem #1. I can
Don't understand what I did wrong for the first answer. I would appreciate some help understanding the correct way to do problem #1. I can figure the rest out myself after your help. Please and thank you.
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 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 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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 20,000 $ 760,000 $ 4.00 Fabrication 31,000 $ 260,000 $ 1.50 Total 51,000 $ 1,020,000 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 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 200,000 15,000 Fabrication $ 320,000 $ 180,000 5,000 Total $ 690,000 $ 380,000 20,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding $ 260,000 $ 180,000 5,000 Fabrication $ 280,000 $ 300,000 26,000 Total $ 540,000 $ 480,000 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? d. What is Delph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given below. Required 1A Required 1B Required 1C Required 10 Assume Delph uses plantwide predetermined overhead rates based on machine-hours. Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate $ 22.48 X per MHStep by Step Solution
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