EXERCISE 3-18 Plantwide and Departmental Overhead Rates: Job Costs L01, Lo2, Lo:3 Molding and Fabricatio the year mithson Company uses a job-order costing system and has two manufacturing departments- n. The company provided the following estimates at the beginning of Moding Fabrication Total Machine-hours Fixed manufacturing overhead costs 20,000 30,000 50,000 .:$800,000 $300,000 $1,100,000 $5.00 $5.00 During the year, the company had no beginning or ending inventories and it started, completed those two jobs: Job D-75: Direct labor cost and sold only two jobs-Job D-75 and Job C-100. It provided the following information related to Molding Fabrication Total .$375,000 $325,000 $700,000 $200,000 $160,000 $360,000 15,000 5,000 20,000 Machine-hours Job C-100: Molding Fabrication.Total .. .$300,000 $250,000 $550,000 Direct labor cost $175,000 $225,000 $400,000 5,000 25,000 30,000 Machine-hours . Smithson had no overapplied or underapplied manufacturing overbead during the year. Required 1. Assume Smithson uses a plantwide overhead rate based on machine-hours. a. Compute the predetermined plantwide overhead rate b. Compute the total manufacturing costs assigned to Job D-75 and Job C-100. c. If Smithson establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? d. What is Smithson's cost of goods sold for the year? Assume Smithson uses departmental overhead rates based on machine-bours. a. Compute the predetermined departmental overhead rates 2. Compute the total manufacturing costs assigned to Job D-75 and Job C-100 If Smithson establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? What is Smithson's cost of goods sold for the year? c. 3. What managerial insights are revealed by the computations that you performed in this prob- and 2 differ d. lem? (Hint: Do the cost of goods sold amounts that you computed in requirements differ from one another? Do the bid prices that you computed in requirements 1 from one another? Why?)