Question
Required information Skip to question [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing
Required information
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[The following information applies to the questions displayed below.]
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:
MoldingFabricationTotalMachine-hours23,00034,00057,000Fixed manufacturing overhead cost$ 740,000$ 220,000$ 960,000Variable manufacturing overhead cost per machine-hour$ 4.00$ 1.00
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-70MoldingFabricationTotalDirect materials cost$ 370,000$ 320,000$ 690,000Direct labor cost$ 220,000$ 140,000$ 360,000Machine-hours16,0007,00023,000
Job C-200MoldingFabricationTotalDirect materials cost$ 280,000$ 300,000$ 580,000Direct labor cost$ 180,000$ 260,000$ 440,000Machine-hours7,00027,00034,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate 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 Delphs cost of goods sold for the year?
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