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Required information Exercise 3-17 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO3-1, LO3- 2, LO3-3, LO3-4] [The following information applies to the questions
Required information Exercise 3-17 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO3-1, LO3- 2, LO3-3, LO3-4] [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 55,000 machine-hours would be required for the period's estimated level of production. It also estimated $940,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing 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 Fabrication 24,000 31,000 Total 55,000 $ 700,000 $ 240,000 $940,000 $ 4.00 $ 1.50 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 Molding Fabrication Total those two jobs: Job D-70 Molding Fabrication Total Direct materials cost $ 370,000 $ 240,000 Direct labor cost Machine-hours Job C-200 $320,000 $ 690,000 $ 180,000 $420,000 24,000 13,000 11,000 Molding Fabrication Total Direct materials cost Direct labor cost Machine-hours $ 260,000 $ 260,000 $520,000 $ 120,000 $ 240,000 $ 360,000 11,000 20,000 31,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 3-17 (Algo) Part 1 Required: 1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours. a. Compute the plantwide predetermined overhead rate. 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 costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph's cost of goods sold for the year
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