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! Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system with a plantwide predetermined overhead
! Required information [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 57,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 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 23,000 $ 760,000 $ 3.00 Fabrication 34,000 $220,000 $ 2.00 Total 57,000 $980,000 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: Molding $ 370,000 Fabrication $ 320,000 $ 160,000 10,000 $ 220,000 13,000 Job D-70 Direct materials cost Direct labor cost Machine-hours Job C-200 Molding Direct materials cost $ 280,000 Direct labor cost Machine-hours $ 120,000 10,000 Fabrication $ 240,000 $ 260,000 24,000 Total $ 690,000 $ 380,000 23,000 Total $520,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year.
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