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 50,000 machine-hours would be required for the period's estimated level of production. It also estimated $910,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.80 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabricationit 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 20,000 $ 700,000 $ 3.00 Fabrication 30,000 $ 210,000 $ 1.00 Total 50,000 $ 910,000 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 Job D-70 Direct materials cost Direct labor cost Machine-hours $ 375,800 $ 200,800 14,000 Fabrication $ 325,000 $ 160, 808 Total $ 700,000 $360,000 20,000 6,000 Job C-200 Direct materials cast Direct labor cost Machine-hours Molding $ 300,800 $ 175,000 6,000 Fabrication $ 250,000 $ 225,000 24,000 Total $ 550,000 $ 400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 2. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates 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 cost, what bid prices would it have established for Job D-70 and Job C-2007 d. What is Delph's cost of goods sold for the year? Required 2A Required 2B Required 20 Required 2D Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the departmental predetermined overhead rates. Predetermined Overhead Rates per MH Molding Department Fabrication Department per MH Required 2A Required 2B > Required 2A Required 2B Required 2C Required 2D Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. Total Manufacturing Cost Job D-70 Job C-200 Required 2A Required 2B Required 2C Required 2D Assume Delph uses departmental predetermined overhead rates based on machine-hours. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? Bid Price Job D-70 Job C-200 Required 2A Required 2B Required 2C Required 2D Assume Delph uses departmental predetermined overhead rates based on machine-hours. What is Delph's cost of goods sold for the year? Cost of goods sold
