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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
Required information
The following information applies to the questions displayed below.
Delph Company uses a joborder costing system with a plantwide predetermined overhead rate based on machine
hours. 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 Delph 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 plantwide predetermined overhead rates based on machinehours.
a Compute the plantwide predetermined overhead rate.
b Compute the total manufacturing cost assigned to Job D and Job C
c If Delph establishes bid prices that are of total manufacturing costs, what bid prices would it have established for Job D
and Job C
d What is Delph's cost of aoods sold for the vear?
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