Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $270,000
Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $270,000 of total manufacturing overhead cost for an estimated activity level of 12,000 direct labor- hours. The company incurred actual total manufacturing overhead cost of $269,000 and 12,700 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period. Manufacturing overhead applied of 2 Check my work [The following information applies to the questions displayed below.) Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine- hours. At the beginning of the year, the company estimated that 57,000 machine-hours would be required for the period's estimated level of production. It also estimated $920,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it 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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Holding 24,000 $700,000 $ 5.00 Fabrication 33,000 $220,000 $ 1.00 Total 57,000 $920,000 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-70 Direct materials cost Direct labor cost Molding $370,000 $220,000 Fabrication $ 320,000 Total $690,000 Machine-hours 17,000 $ 140,000 7,000 $360,000 24,000 Job C-200 Molding Direct materials cost Direct labor cost Machine-hours $220,000 $140,000 7,000 Total $460,000 $420,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Fabrication $ 240,000 $ 280,000 26,000 Dem www. Alout Part 1 of 2 effack 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 the question by entering your answers in the tabs given below. Required 1A Required 18 Required 1C Required ID 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 per MH Required 1X Required 18 > Complete the question by entering your answers in the tabs given below. Required 1A Required 18 Required 1C Required 1D Assume Delph uses plantwide predetermined overhead rates based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. Note: Round your Intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar amount Total Manufacturing Cost Job D-70 Job C-200 Part 1 of 2 pn hea no un led or overapplied manufacturing overhead during the year. 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-2007 d. What is Delph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given below. Required 1A Required 18 Required 1C Required 10 Assume Delph uses plantwide predetermined overhead rates based on machine-hours. 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-2007 Note: Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar amount. Bid Price Job D-70 Job C-200 Required 18 Required 10 > 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 cf 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-2007 d What is Delph's cost of goods sold for the year? Complete the question by entering your answers in the tabs given below. Required 1A Required 15 Required 1C Required 10 Assume Delph uses plantwide predetermined overhead rates based on machine-hours. What is Delph's cost of goods sold for the year? Note: Round your intermediate calculations to 2 decimal places. Round your final answer to the nearest whole dollar amount Cost of goods sold Required 10
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started