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[The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The
[The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours Molding Fabrication 23,000 30,000 $780,000 $ 240,000 1.50 Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour $ 3.00 $ Total 53,000 $1,020,000 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: Job D-70 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $370,000 $320,000 $690,000 $200,000 $140,000 $340,000 13,000 10,000 23,000 Job C-200 Molding Fabrication Direct materials cost Direct labor cost. Machine-hours Total $280,000 $200,000 $480,000 $180,000 $ 280,000 $460,000 10,000 20,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 (Algo) Part 1 Required: 1. 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-200? d. What is Delph's cost of goods sold for the year?
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