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Exercise 2-15 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4]

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Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year:

	Molding		Fabrication			Total
Machine-hours		23,000		33,000		56,000
Fixed manufacturing overhead cost	$	760,000	$	220,000	$	980,000
Variable manufacturing overhead cost per machine-hour	$	4.00	$	1.50

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	$	370,000	$	320,000	$	690,000
Direct labor cost	$	220,000	$	120,000	$	340,000
Machine-hours		13,000		10,000		23,000

Job C-200	Molding		Fabrication		Total
Direct materials cost	$	220,000	$	300,000	$	520,000
Direct labor cost	$	120,000	$	280,000	$	400,000
Machine-hours		10,000		23,000		33,000

Delph had no underapplied or overapplied manufacturing overhead during the year.

rev: 07_21_2020_QC_CS-217627, 09_03_2020_QC_CS-225692

Exercise 2-15 (Algo) Part 1

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?