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Exercise 2-17 (Algo) Part 1 Required: 1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours. a. Compute the plantwide predetermined overhead rate. b.
Exercise 2-17 (Algo) Part 1 Required: 1. Assume Delph uses plantwide predetermined overhead rates 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 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? Complete this question by entering your answers in the tabs given below. Required 1A Required 1B Required 1C Required 1D Assume Delph uses plantwide predetermined overhead rates based on machine-hours. Compute the plantwide predetermined overhead rate. Note: Round your answer to 2 decimal places. Predetermined overhead rate 17.14 per MH Required information Exercise 2-17 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2- 2,L02-3, LO2-4] [The following information applies to the questions displayed below ] Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $960,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour. Because Delph has two manufacturing departmentsMolding and Fabricationit 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: Molding Fabrication Total Machine-hours 22,808 34,008 56,888 Fixed manufacturing overhead cost % 76@,200 200,000 % 960,000 Variable manufacturing overhead cost per machine-hour 4 5.80 3 2.08 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-7e Molding Fabrication Total Direct materials cost % 376,280 4 328,008 3 698,088 Direct labor cost % 228,088 % 168,008 % 388,088 Machine-hours 16,888 6,008 22,088 Job C-2008 Molding Fabrication Total Direct materials cost L 280,008 $ 260,880 % 450,008 Direct labor cost 4 188,008 $ 280,880 % 460,088 Machine-hours 6,888 28,008 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-17 (Algo)
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