Required information Exercise 2-15 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2- 2, LO2-3, LO2-4] [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 53,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 22,000 $740,000 $ 5.00 Fabrication 31,000 Total 53,000 $ 1,020,000 $ 280,000 $ 1.50 During the year, the company had no beginning of 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: Holding $370,000 $ 240,000 13,000 Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Direct materials cost $220,000 Direct labor cost $ 120,000 Machine-hours 9,000 Molding Fabrication $ 320,000 $ 180,000 9,000 Fabrication $240,000 $ 260,000 22,000 Total $690,000 $420,000 22,000 Total $460,000 $380,000 31,000 Delph had no underapplied or overapplied manufacturing overhead during the year. < Prev 7 8 of 8 Next >