Question

The following in t o the wonded below Deiph 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 Molding Fabrication Machine hours 29.000 39.000 68.000 Freed manufacturing overhead Co $260.000 200.000 60.000 Variable ma turing overhead cost per machine hour $ S50 $ 550 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. provided the following information related to those two jobs Job D-70: Direct materials cost Direct labor co Machine-hours Molding $ 375.000 -$ 220,000 22.000 Fabrication $325,000 $ 20,000 Total $700,000 $340,000 20.000 7000 Job C 200 Direct materials cost Direct inborot Machine hours $ $ Molding Fabrication Total 210.000 $250,000 $450,000 150,000 $ 280,000 $390,000 2000 32.000 39.000 Delph had no underapplied or overapplied manufacturing overhead during the year. Award: 4.00 points Required: 1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours a. Compute the plantwide predetermined overhead rate 9234 b. Compute the total manufacturing cost assigned to Job D-70 and Job C-2003 2 2 c. Deiph establishes bid prices that are 140% 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? Complete the question by entering your answers in the tabs given below. Required IA Required 18 Required IC Required 10 Assume Delph uses a plantwide predetermined overhead rate based on machine-hours. Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places Predamined overhead rate per MH ( Required 1A Required 18 > Garson 16e Reches 2017-08-08 2018-0521 o 16 Recheos 2019 10 11 G References

Answer 1

solution: a.predetermined overhead rate : Variable overhead per machine hour fixed overhead per machine hour=960000/68000 pre determined overhead rate 5.50 14.12 19.62 per MH b. Cost assignment Job D-70 Job c-200 Direct material 700000.00 460000.00 direct labor 340000.00 390000.00 overhead applied (19.62*29000), (19.62*39000) | 568911.76 765088.24 total manufacturing costs assigned 1608911.76 1615088.24 total manufacturing costs assigned x 140% Bid price Job D-70 Job c-200 1608911.76 1615088.24 140% 140% 2252476.47 2261123.53 d. Job D-70 Job c-200 Total cost of goods sold for the year 1608911.76 1615088.24 3224000.00