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:

$\backslash$table$[[$Job D$-70,$Molding,Fabrication,Total$],[$Direct materials cost,$$,370,000,$$$,320,000,$$$,690,000],[$Direct labor cost,$$,220,000,$$$,120,000,$$$,340,000],[$Machine$-$Hours,,$16,000,,6,000,,22,000],[$Job C$-200,$Molding,Fabrication,,Total$],[$Direct materials cost,$$,220,000,$$$,260,000,$$$,480,000],[$Direct labor cost,$$,140,000,$$$,300,000,$$$,440,000],[$Machine$-$Hours,,$6,000,,25,000,,31,000]]$

Start Here

Exercise $2-15$

Delph had no underapplied or overapplied manufacturing overhead during the year.

Required:

$1$ Assume Delph uses departmental predetermined overhead rates based on machine$-$hours.

a Compute the departmental predetermined overhead rates.

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 cost, 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?

$2$ Assume Delph chooses to combine its departmental rates from requirement $1$ into a plantwide predetermined overhead rate 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 cost, 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?

$3$ What managerial insights are revealed by the computations that you performed in this problem? $($Hint: Do the cost of goods sold amounts that you computed in requirements $1$ and $2$ differ from one another? Do the bid prices that you computed in requirements $1$ and $2$ differ from one another? Why?