EXERCISE 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs LO2-1, LO2-2, LO2-3, LO2-4 Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Machine-hours ............ 20,000 Fixed manufacturing overhead cost ................... $ 700,000 Variable manufacturing overhead cost per machine-hour .... $3.00 Fabrication 30,000 $210,000 $1.00 Total 50,000 $910,000 During the year, the company had no beginning or ending inventories and it started, com- pleted, 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 $375,000 $200,000 14,000 Fabrication $325,000 $160,000 6,000 Total $700,000 $360,000 20,000 ... Total Job C-200 Molding Direct materials cost ............ $300,000 Direct labor cost .................................... $175,000 Machine-hours ... 6,000 Fabrication $250,000 $225,000 24,000 $550,000 $400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours. a. Compute the plant wide 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? 2. 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 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? 3. What managerial insights are revealed by the computations that you performed in this prob- lem? (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?)