Question

Required Information 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 Pixed manufacturing overhead costs Variable manufacturing overhead coat per machine-hour Molding Fabrication 28,000 38,000 $ 700,000 $ 220,000 $ 5.70 $ 5.70 Total 66,000 $920,000 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-701 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 380,000 $328,000 $700.000 $ 240,000 $ 140,000 $380,000 18,000 10,000 28,000 Job C-2005 Direct materials cost Direct labor cost Machine-hours Molding Fabrication total $ 270,000 $ 220,000 $ 490,000 $ 180,000 $280,000 $460,000 10,000 28,000 30,000 Delph had no underapplied for overapplied manufacturing overhead during the year. 2. 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 130% of total manufacturing costs, what bld prices would it have established for Job D-70 and Job C-200?

There are four parts to this question. The data for each part is in the first photo.

Answer 1

a.
Departmental predetermined overhead rates	Total overhead costs/Estimated machine hours
Molding department	(700000/28000)+5.70
Molding department	$30.70	per MH
Fabrication department	(220000/38000)+5.70
Fabrication department	$11.49	per MH
b.
Calculation of manufacturing costs assigned to job
	Job D-70
Direct material costs	$708,000
Direct labor costs	$380,000
Overhead applied (18,000*30.70+ 10,000*11.49)	$667,500
Total overhead costs	$1,755,500
	Job C-200
Direct material costs	$490,000
Direct labor costs	$460,000
Overhead applied (10,000*30.70+ 28,000*11.49)	$628,720
Total overhead costs	$1,578,720
c.
	Job D-70	Job C-200
Total overhead costs	$1,755,500	$1,578,720
Bid price	$2,282,150	$2,052,336
	1755500*130%	1578720*130%
d.
Cost of goods sold	$3,334,220	1755500+1578720