EXERCISE 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs Delph Company uses a job-order costing system and has two manufacturing departments--Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-Hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 20,000 Fabrication 30,000 Total 50,000 $ $ 700,000 $ 210,000 $ 910,000 3 $ 1 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 Direct materials cost Direct labor cost Machine-Hours Molding Fabrication Total $ 375,000 $ 325,000 $ 700,000 $ 200,000 $ 160,000 $ 14,000 360,000 6,000 20,000 Job C-200 Molding Fabrication Total Direct materials cost Direct labor cost Machine-Hours $ $ 300,000 $ 250,000 $ 175,000 $ 225,000 $ 550,000 400,000 6,000 24,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1 2 3 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? 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-2007 d What is Delph's cost of goods sold for the year? 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