Question
[The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company
[The following information applies to the questions displayed below.]
Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year: |
Molding | Fabrication | Total | ||||
Machine-hours | 20,000 | 30,000 | 50,000 | |||
Fixed manufacturing overhead costs | $ | 700,000 | $ | 210,000 | $ 910,000 | |
Variable manufacturing overhead per machine-hour | $ | 3.00 | $ | 3.00 | ||
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D-70 and Job C-200. It provided the following information related to those two jobs: |
Job D-70: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 375,000 | $ | 325,000 | $ | 700,000 |
Direct labor cost | $ | 200,000 | $ | 160,000 | $ | 360,000 |
Machine-hours | 14,000 | 6,000 | 20,000 | |||
Job C-200: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 300,000 | $ | 250,000 | $ | 550,000 |
Direct labor cost | $ | 175,000 | $ | 225,000 | $ | 400,000 |
Machine-hours | 6,000 | 24,000 | 30,000 | |||
Delph had no overapplied or underapplied manufacturing overhead during the year.
Assume Delph uses departmental overhead rates based on machine-hours.
|
2-a. | Compute the predetermined departmental overhead rates. |
2-b. | Compute the total manufacturing costs assigned to Job D-70 and Job C-200. |
2-c. | If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? |
2-d. | What is Delphs cost of goods sold for the year? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started