Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [ The following information applies to the questions displayed below. ] Delph Company uses job - order costing with a plantwide predetermined overhead
Required information
The following information applies to the questions displayed below.
Delph Company uses joborder costing with a plantwide predetermined overhead rate based on machinehours. At the
beginning of the year, the company estimated that machinehours would be required for the period's estimated
level of production. It also estimated $ of fixed manufacturing overhead cost for the coming period and variable
manufacturing overhead of $ per machinehour.
Because Delp has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide
overhead rate with departmental rates that would also be based on machinehours. The company gathered the following
information to enable calculating departmental overhead rates:
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs
Job D and Job C It provided the following information related to those two jobs:
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
Assume Delph uses departmental predetermined overhead rates based on machinehours.
a Compute the departmental predetermined overhead rates.
b Compute the total manufacturing cost assigned to Job D and Job C
c If Delph establishes bid prices that are of total manufacturing cost, what bid prices would it have established for Job D and
Job C
d What is Delph's cost of goods sold for the year?
Answer is not complete.
Complete this question by entering your answers in the tabs given below.
Assume Delph uses departmental predetermined overhead rates based on machinehours. Compute the departmental
predetermined overhead rates.
Note: Round the final answers to decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started