Question

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 Mokaaion Total Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour 26,000 36,000 62,000 250.000 $1.020,000 770.000 s 5.70 5.70

Answer 1

Part 1 – A

Predetermined overhead rate = variable costs per machine hour + fixed costs per machine hour = 5.70+(1020000/62000) = $22.15 per MH

Fixed cost per machine hour = fixed manufacturing overhead costs/machine hours

Therefore,

Predetermined overhead rate

$22.15

Per MH

Part 1 B

	Job D-70	Job C-200
Direct materials cost	699000	520000
Direct labor cost	360000	400000
Manufacturing overhead	575900 (26000*22.15)	797400 (36000*22.15)
Total manufacturing costs	1634900	1717400

Therefore,

	Total manufacturing costs
Job D-70	1634900
Job C-200	1717400

Part 1 – C

	Job D-70	Job C-200
Total manufacturing costs	1634900	1717400
margin	140%	140%
Bid price	2288860	2404360

Therefore,

	Bid price
Job D-70	2288860
Job C-200	2404360

Part 1 D

Cost of goods sold = total manufacturing cost for Job D-70 + total manufacturing cost for Job C-200 = 1634900+1717400 = 3352300

Therefore,

Cost of goods sold

$3352300