Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [ The following information applies to the questions displayed below. ] Delph Company uses a job - order costing system with a plantwide

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 $1,000,000 of fixed manufacturing overhead cost for the
coming period and variable manufacturing overhead of $5.00 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:
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:
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
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 aoods sold for the vear?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: Les Heitger, Pekin Ogan, Serge Matulich

2nd Edition

ISBN: 053881764X, 978-0538817646

More Books

Students also viewed these Accounting questions

Question

=+3. What are the characteristics of media enterprises?

Answered: 1 week ago

Question

=+1. What are the product specifications of media products?

Answered: 1 week ago