Question
Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs The following information applies to the question displayed below. Delph Company uses a job-order system
Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs
The following information applies to the question displayed below.
Delph Company uses a job-order system and has two manufacturing departments- Molding and Fabrication.
The company provided the following estimates at the beginning of the year.
Molding Fabrication Total
Machine-hours 21,000.00 32,000.00 53,000.00
Fixed manufacturing overhead costs $720,000.00 $240,000.00 $960,000.00
Variable manufacturing overhead cost per machine-hour $5.00 $1.50
During the year, the company had no beginning or ending inventories and it started, completed, and sold only tow jobs-
Job D-70 and Job C-200. It provided the following information related to those two jobs.
JOB D-70 Molding Fabrication Total
Direct materials costs $370,000.00 $320,000.00 $690,000.00
Direct labor cost $240,000.00 $180,000.00 $420,000.00
Machine-hours 16,000.00 5,000.00 21,000.00
JOB C-200 Molding Fabrication Total
Direct materials costs $280,000.00 $300,000.00 $580,000.00
Direct labor cost $140,000.00 $220,000.00 $360,000.00
Machine-hours 5,000.00 27,000.00 32,000.00
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise 2-15 Part 2
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?
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