Question

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 Molding Fabrication Total 25,000 35.000 60.000 $ 740,000 3 280.000 31,020,000 $ 3.80 5.80 Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 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-30 Direct materials cost Direct labor cost Machine-hours Holding Fabrication Total $ 374,000 $329,000 $703,000 $ 210,000 $170,000 $380,000 17,000 8,000 25,000 Job C-2001 Direct materials cost Direct labor cost Machine-hours Molding Tabrication Total $ 220,000 $ 280,000 $ 500,000 $ 110,000 $ 270,000 $380,000 8.000 27.000 35,000 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 140% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-2002 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 18 Required 1C Required 1D 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 per мн | Required 18 >

Answer 1

1a
Estimated Variable manufacturing overhead	348000	=(25000*5.8)+(35000*5.8)
Estimated Fixed manufacturing overhead	1020000
Total Estimated manufacturing overhead	1368000
Divide by Estimated Machine hours	60000
Predetermined overhead rate	22.80	per MH
1b
	Job D-70	Job C-200
Direct materials cost	703000	500000
Direct labor cost	380000	380000
Overhead applied	570000	798000
Total manufacturing cost	1653000	1678000
1c
	Job D-70	Job C-200
Total manufacturing cost	1653000	1678000
Add: Markup @40%	661200	671200
Bid prices	2314200	2349200
1d
Total manufacturing cost Job D-70	1653000
Total manufacturing cost Job C-200	1678000
Cost of goods sold	3331000
Workings:
Overhead applied:
Job D-70	570000	=25000*22.80
Job C-200	798000	=35000*22.80