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[The following information applies to the questions displayed below.] Espinoza-Hunter 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.]

Espinoza-Hunter 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 23,000 34,000 57,000
Fixed manufacturing overhead costs $ 740,000 $ 240,000 $ 980,000
Variable manufacturing overhead cost per machine-hour $ 3.00 $ 2.00

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 $ 370,000 $ 320,000 $ 690,000
Direct labor cost $ 220,000 $ 160,000 $ 380,000
Machine-hours 15,000 8,000 23,000

Job C-200: Molding Fabrication Total
Direct materials cost $ 260,000 $ 240,000 $ 500,000
Direct labor cost $ 160,000 $ 300,000 $ 460,000
Machine-hours 8,000 26,000 34,000

Espinoza-Hunter had no underapplied or overapplied manufacturing overhead during the year.

rev: 07_28_2020_QC_CS-217627, 09_05_2020_QC_CS-224324

Required:

1. Assume Espinoza-Hunter uses a plantwide predetermined overhead rate based on machine-hours.

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

c. If Espinoza-Hunterestablishes 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 Espinoza-Hunter's cost of goods sold for the year?

ANSWER FOLLOWING:

Required 1A Predetermined overhead rate ______ per MH

Total Manufactoring Cost

Required 1 B Job D-70________

Job C-200________

Bird Price

Required 1C Job D-70__________

Job C-200_________

Required 1 D Cost of Goods Sold_____

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