Question
Machine-hours 31,000 41,000 72,000 Fixed manufacturing overhead costs $ 720,000 $ 270,000 $ 990,000 Variable manufacturing overhead per machine-hour $ 5.50 $ 5.50 During the
| Machine-hours | 31,000 | 41,000 | 72,000 | |||
| Fixed manufacturing overhead costs | $ | 720,000 | $ | 270,000 | $ 990,000 | |
| Variable manufacturing overhead per machine-hour | $ | 5.50 | $ | 5.50 | ||
| 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 | $ | 378,000 | $ | 329,000 | $ | 707,000 |
| Direct labor cost | $ | 210,000 | $ | 180,000 | $ | 390,000 |
| Machine-hours | 24,000 | 7,000 | 31,000 | |||
| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 290,000 | $ | 240,000 | $ | 530,000 |
| Direct labor cost | $ | 140,000 | $ | 250,000 | $ | 390,000 |
| Machine-hours | 7,000 | 34,000 | 41,000 | |||
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.) |
| 1-b. | Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) |
| 1-c. | If Delph establishes bid prices that are 120% 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.) |
| 1-d. | What is Delphs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
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.) |
| 2-b. | Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) |
| 2-c. | If Delph establishes bid prices that are 120% 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.) |
| 2-d. | What is Delphs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
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