Question

Required information Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4) (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 Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour Molding Fabrication 21,000 31,000 $ 730,000 $300,000 $ 5.20 $ 5.20 Total 52,000 $1,030,000 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-70 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 380,000 $328,000 $ 700,000 $ 250,000 $ 160,000 $ 410,000 16,000 5,000 21,000 Job C-2001 Direct materials coat Direct labor cost Machine-hours Molding Fabrication Total 250,000 $ 260,000 $ 510,000 $ 170,000 $ 240,000 $410,000 5.000 26,000 31,000 Required 28 R 2 Regine 20 Required 2A Required 28 Required 2c Required 20

Answer 1

	Molding	Fabrication
Fixed manufacturing overhead cost	730,000	300,000
Machine hours	21,000	31,000
Fixed manufacturing rate per hour	34.7619	9.6774194
Variable manufacturing overhead rate	5.2	5.2
Pre determined overhead rate	39.96	14.88
Cost Assigned
	D-70	C-200
Direct Material cost	708,000	510,000
Direct Labor Cost	410,000	410,000
Overheads:
Molding	639,360	199,800
Fabrication	74,400	386,880
Total cost assigned	1,831,760	1,506,680
Bid Price
	D-70	C-200
Total cost	1,831,760	1,506,680
Bid Price	2,381,288	1,958,684
Cost of Goods sold = Cost of jobs	3,338,440