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Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost
Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours.
a. Compute the departmental predetermined overhead rates.
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 cost, what bid prices would it have established for Job D-70 and Job C-200?
d. What is Delphs cost of goods sold for the year?
Required information [The following information applies to the questions displayed below.) Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 21,000 $ 760,000 $ 5.00 Fabrication 35,000 $ 200,000 $ 1.50 Total 56,000 $ 960,000 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 Machine-hours Molding $ 370,000 $ 240,000 13,000 Fabrication $ 320,000 $ 140,000 8,000 Total $ 690,000 $ 380,000 21,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding $ 220,000 $ 180,000 8,000 Fabrication $ 300,000 $ 260,000 27,000 Total $ 520,000 $ 440,000 35,000 Delph had no underapplied or overapplied manufacturing overhead during the yearStep by Step Solution
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