problem 8-23

verhead dted a cost Variable manufact g overhead cost per machine-hour 100,000 $650,000 $3.00 Compute the predeted overbead rate During t the year, Jo was started and completed. The followving infomation was available with respect to this Direct materialsreuigitioned Direct labor cos Machine-hours used $450 $210 40 te the total manufacturing cost assigned to Job 400. During the year, the company worked a urred actual manufacturing ov total of 146,000 machine-hours on all jobs and plied or overappli Goods Sold would the journal entry increase or decrease net operating income? erhead costs of s1.350,000. What is the amount of underap- ied overhead for the year? If this amount were closed out entirely to Cost of EXERCISE 8-23 Plant ide and Departmental Overhead Rates; Job Costs LO3, LO4, L06] and Fabrication. The company provided the following estimates at the beginni Company uses a job-order costing system and has two manufacturing departments-Molding ng of the year Molding Fabrication Total Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour 50,000 $700,000 $210,000 $910,000 20,000 30,000 $3.00 $3.00 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: Molding Fabrication Total Job D-70 $200,000 $160,000 $360,000 14,000 6,000 20,000 .$375,000 $325,000 $700,000 Direct materials cost Direct labor cost . ....1 Molding FabricationTotal $300,000 $250,000 $550,000 $175.000 $2.000 540000 Job C-200 Direct materials cost . Direct labor cost Chapter 8 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 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? 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 c. 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? 3. What managerial insights are revealed by the computations that you performed in this prob- lem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements I and 2 difa from one another? Why?) E connect PROBLEM 8-24 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO7) Superior Company provided the following account balances for the year ended Decemier (all raw materials are used in production as direct materials): $140,000 $290,000 Purchases of raw materials . .. Direct labor Administrative expenses Manufacturing overhead applied to work in process S270 Total actual manufacturing overhead costs $100,000 $285,000 $270,000 Inventory balances at the beginning and end of the year were as follows: Beginning of End of e