Smithson Company uses a job costing system and has two manufacturing departments: Molding and Fabrication. The company provided the following estimates at the beginning of the year:

	Frame		Manufacturing		Total
machine hours		25,000		35,000	60.000
Fixed overhead manufacturing costs	ps	720.000	ps	230.000	$ 950,000
Variable manufacturing overhead per machine-hour	ps	5.00	ps	5.00

During the year, the company had no beginning or ending inventories and started, completed, and sold only two jobs: job D-75 and job C-100. He provided the following information related to those two jobs:

Job D-75:	Frame		Manufacturing		Total
Direct Material Cost	ps	372,000	ps	329,000	ps	701,000
Direct labor cost	ps	230.000	ps	150.000	ps	380.000
machine hours		18,000		7,000		25,000

Job C-100:	Frame		Manufacturing		Total
Direct Material Cost	ps	210,000	ps	250.000	ps	460.000
Direct labor cost	ps	150.000	ps	280.000	ps	430.000
machine hours		7,000		28,000		35,000

Smithson had no over- or under-allocated manufacturing overhead costs during the year.

1.Suppose Smithson uses a plant-wide overhead rate based on machine-hours

1-a.	Calculate the default plant-wide overhead rate.

1-b.	Calculate the total manufacturing costs assigned to job D-75 and job C-100.

1-c.	If Smithson sets bid prices that are 120% of total manufacturing costs, what bid price would he have set for job D-75 and job C-100?

1-d.	What is Smithson's cost of goods sold for the year?