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Required information Exercise 3 - 1 7 ( Algo ) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [ LO 3 - 1 , LO

Required information
Exercise 3-17(Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO3-1, LO3-2, LO3-3, LO3-4]
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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 57,000 machine-hours would be required for the periods estimated level of production. It also estimated $960,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 per machine-hour.
Because Delph has two manufacturing departmentsMolding and Fabricationit 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:
Molding Fabrication Total
Machine-hours 25,00032,00057,000
Fixed manufacturing overhead cost $ 740,000 $ 220,000 $ 960,000
Variable manufacturing overhead cost per machine-hour $ 5.00 $ 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 $ 200,000 $ 160,000 $ 360,000
Machine-hours 13,00012,00025,000
Job C-200 Molding Fabrication Total
Direct materials cost $ 280,000 $ 300,000 $ 580,000
Direct labor cost $ 120,000 $ 260,000 $ 380,000
Machine-hours 12,00020,00032,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise 3-17(Algo) Part 2
Required:
Assume Delph uses departmental predetermined overhead rates based on machine-hours.
Compute the departmental predetermined overhead rates.
Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
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?
What is Delphs cost of goods sold for the year?
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