Exercise 4-15 Plantwide and Departmental Overhead Rates; Job Costs [LO4-1, LO4-2, LO4-3]

[The following information applies to the questions displayed below.]

Smithson 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		Fabrication		Total
Machine-hours		30,000		40,000		70,000
Fixed manufacturing overhead costs	$	700,000	$	230,000	$	930,000
Variable manufacturing overhead per machine-hour	$	5.00	$	5.00

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D-75 and Job C-100. It provided the following information related to those two jobs:

Job D-75:	Molding		Fabrication		Total
Direct materials cost	$	373,000	$	327,000	$	700,000
Direct labor cost	$	210,000	$	130,000	$	340,000
Machine-hours		22,000		8,000		30,000

Job C-100:	Molding		Fabrication		Total
Direct materials cost	$	210,000	$	280,000	$	490,000
Direct labor cost	$	150,000	$	270,000	$	420,000
Machine-hours		8,000		32,000		40,000

Smithson had no overapplied or underapplied manufacturing overhead during the year.

7.

value: 12.00 points

Required information

Exercise 4-15 Part 2

Assume Smithson uses departmental overhead rates based on machine-hours.

2-a. Compute the predetermined departmental overhead rates. (Round your answer to 2 decimal places.)

2-b. Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.)

2-c. If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.)

2-d. What is Smithsons cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)