Required information Exercise 3 17 (Algo) Plantwide and Departmental Predetermined Overhead Rates Job Costs LO3 1, LO3 2, LO3 3, LO3 4 Skip to question 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 periods estimated level of production It also estimated $1,060,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4 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 20,000 33,000 53,000 Fixed manufacturing overhead cost $ 800,000 $ 260,000 $ 1,060,000 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 $ 180,000 $ 400,000 Machine hours 15,000 5,000 20,000 Job C 200 Molding Fabrication Total Direct materials cost $ 240,000 $ 300,000 $ 540,000 Direct labor cost $ 160,000 $ 300,000 $ 460,000 Machine hours 5,000 28,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year Exercise 3 17 (Algo) Part 1 Required Assume Delph uses plantwide predetermined overhead rates based on machine hours Compute the plantwide predetermined overhead rate 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 costs, 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

Required information Exercise 3-17 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO3-1, LO3-2, LO3-3, LO3-4] Skip to question [The following information applies to

Required information

Exercise 3-17 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO3-1, LO3-2, LO3-3, LO3-4]

Skip to question

[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 periods estimated level of production. It also estimated $1,060,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 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	20,000	33,000	53,000
Fixed manufacturing overhead cost	$ 800,000	$ 260,000	$ 1,060,000
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	$ 180,000	$ 400,000
Machine-hours	15,000	5,000	20,000

Job C-200	Molding	Fabrication	Total
Direct materials cost	$ 240,000	$ 300,000	$ 540,000
Direct labor cost	$ 160,000	$ 300,000	$ 460,000
Machine-hours	5,000	28,000	33,000

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

Exercise 3-17 (Algo) Part 1

Required:

Assume Delph uses plantwide predetermined overhead rates based on machine-hours.
1. Compute the plantwide predetermined overhead rate.
2. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
3. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?
4. What is Delphs cost of goods sold for the year?