Exercise 2-15 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4] [The following Information applies to the questions displayed below.] 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 54,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 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: Machine-hours Molding 22,000 $ 700,000 $ 3.00 Fabrication 32,000 $ 280,000 Total 54,000 $ 2.00 Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour $980,000 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: Molding $ 370,000 $220,000 16,000 Fabrication $ 320,000 $ 180,000 6,000 Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Molding Direct materials cost $ 240,000 Direct labor cost $ 180,000 Machine-hours 6,000 Fabrication $ 240,000 $ 260,000 26,000 Total $690,000 $ 400,000 22,000 Total $ 480,000 $440,000 32,000 Delph had no underapplied or overapplied manufacturing overhead during the year. S Next