Question

Required Information [The following information applies to the questions displayed below.) Part 1 of 2 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: 1.25 Dolnts Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding 22,000 $ see,200 $ 5.70 Fabrication 32,000 $ 220,000 $ 5.70 Total 54,000 $1,020,000 eBook 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: Print Job D-78: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 372,000 $ 321,600 $ 693,000 $ 230,000 $ 140,000 $ 370,000 17,000 5,000 22,000 References Job C-2ee: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 210,000 $ 230,000 $440,000 $ 170,000 $ 240,000 $ 410,000 5,800 27,000 32,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 1. Assume Delph 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 Delph establishes bid prices that are 120% of total manufacturing cost, what bid prices would It have established for Job D-70 and Job C-200? 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 1A Required 1B Required 10 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.) Predetermined overhead rate $ 20.00 per MH
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Answer 1

1-a.
	Molding	Fabrication	Total
Estimated total machine hours used	22000	32000	54000
(*) Estimated variable manufacturing overhead per machine hour	5.70	5.70
Estimated total variable manufacturing overhead	125400	182400	307800
Estimated total fixed manufacturing overhead	800000	220000	1020000
Estimated total manufacturing overhead	925400	402400	1327800

Plantwide predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours used = 1327800 / 54000

24.59

per MH

1-b.
	Job D-70	Job C-200
Total actual machine hours used	22000	32000
Plantwide predetermined overhead rate	24.59	24.59
Manufacturing overhead applied	540980	786880
	Job D-70	Job C-200
Direct materials	693000	440000
Direct labor cost	370000	410000
Manufacturing overhead applied	540980	786880
Total manufacturing cost	1603980	1636880

1-c.
	Job D-70	Job C-200
Total manufacturing cost	1603980	1636880
Bid price [ @ 120% of total manufacturing cost ]	1924776	1964256

1-d.
Cost of goods sold = Total manufacturing cost of the Jobs sold = 1603980 + 1636880	3240860