Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 42,000 direct labor-hours would be required for the periods estimated level of production. The company also estimated $511,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $4.00 per direct labor-hour. Harris's actual manufacturing overhead for the year was $757,208 and its actual total direct labor was 42,500 hours.

Required:

Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per DLH

Luthan Company uses a predetermined overhead rate of $23.70 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $284,400 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $270,000 and 11,700 total direct labor-hours during the period.

Required:

Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.

Manufacturing overhead applied

Delph 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		32,000		42,000	74,000
Fixed manufacturing overhead costs	$	780,000	$	290,000	$ 1,070,000
Variable manufacturing overhead per machine-hour	$	6.00	$	6.00

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D-70 and Job C-200. It provided the following information related to those two jobs:

Job D-70:	Molding		Fabrication		Total
Direct materials cost	$	373,000	$	324,000	$	697,000
Direct labor cost	$	250,000	$	150,000	$	400,000
Machine-hours		23,000		9,000		32,000

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	270,000	$	300,000	$	570,000
Direct labor cost	$	120,000	$	230,000	$	350,000
Machine-hours		9,000		33,000		42,000

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

4.

value: 20.00 points

Required information

Assume Delph uses a plantwide overhead rate based on machine-hours.

Required:

1-a.

Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per MH

1-b.	Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

	Total manufacturing cost
Job D-70
Job C-200

1-c.	If Delph establishes bid prices that are 140% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

	Bid price
Job D-70
Job C-200

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

Cost of goods sold

References

eBook & Resources

WorksheetLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-03 Compute the total cost and average cost per unit of a job.

Difficulty: 2 MediumLearning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate.

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5.

value: 25.00 points

Required information

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

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

	Predetermined overhead rates
Molding Department		per MH
Fabrication Department		per MH

2-b.	Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

	Total manufacturing cost
Job D-70
Job C-200

2-c.	If Delph establishes bid prices that are 140% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

	Bid price
Job D-70
Job C-200

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

Cost of goods sold