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 departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year:

MoldingFabricationTotalMachine-hours21,00033,00054,000Fixed manufacturing overhead cost$ 740,000$ 260,000$ 1,000,000Variable 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$ 120,000$ 340,000Machine-hours14,0007,00021,000

Job C-200MoldingFabricationTotalDirect materials cost$ 280,000$ 280,000$ 560,000Direct labor cost$ 100,000$ 240,000$ 340,000Machine-hours7,00026,00033,000

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?