Managerial Accounting, 15th Edition Job order costing Job C-200 Molding Fabrication Total Direct materials cost $300,000 $250,000 $550,000 Direct labor cost $175,000 $225,000 $400,000 Machine-hours 24,000 6,000 30,000 Delph had no overapplied or underapplied manufacturing overhead during the year. Required: 1. Assume Delph 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-70 and Job C-200 c. If Delph establishes bid prices that are i50% of total manufacturing costs, what bid price would it have established for ob D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? 2. Assume Delph uses departmental overhead rates based on machine-hours. a. Compute the predetermined departmental overhead rates. b. Compute the total manufacturing costs assigned to Job D-70 and Job C-200. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? that you performed in this prob- What managerial insights are revealed by the computations in requirements 1 and 2 lem? (Hint: Do the cost of goods sold amounts that you computed and 2 differ differ from one another? Do the bid prices that you computed in requirements 1 3. from one another? Why?) EXERCISE 3-18 Applying overhead; Taccounts; Journal Entries LO3-1, LO3-2, LO 3-4, LO3-5, LO3 Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 80,000 machine- hours would be required for the period's estimated level of production. The company also esti mated $128,000 of fixed manufacturing overhead expenses for the coming period and variable 121 121 Managerial Accounting, 15th Edition Job order costing Job C-200 Molding Fabrication Total Direct materials cost $300,000 $250,000 $550,000 Direct labor cost $175,000 $225,000 $400,000 Machine-hours 24,000 6,000 30,000 Delph had no overapplied or underapplied manufacturing overhead during the year. Required: 1. Assume Delph 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-70 and Job C-200 c. If Delph establishes bid prices that are i50% of total manufacturing costs, what bid price would it have established for ob D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? 2. Assume Delph uses departmental overhead rates based on machine-hours. a. Compute the predetermined departmental overhead rates. b. Compute the total manufacturing costs assigned to Job D-70 and Job C-200. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year? that you performed in this prob- What managerial insights are revealed by the computations in requirements 1 and 2 lem? (Hint: Do the cost of goods sold amounts that you computed and 2 differ differ from one another? Do the bid prices that you computed in requirements 1 3. from one another? Why?) EXERCISE 3-18 Applying overhead; Taccounts; Journal Entries LO3-1, LO3-2, LO 3-4, LO3-5, LO3 Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 80,000 machine- hours would be required for the period's estimated level of production. The company also esti mated $128,000 of fixed manufacturing overhead expenses for the coming period and variable 121 121
