Question

- Homework 12 Required Information Exercise 2-15 (Algo) 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: 12 Molding Fabrication Total 23,000 33,000 56.000 $760,000 $220,000 $980,000 1.50 Machine-hours Fixed manufacturing overhead coat Variable manufacturing overhead cont per machine-hour Priet 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 Molding Fabrication Total Direct materials cont $370,000 $ 320,000 $690.000 Direct labor cost 240,000 $ 140,000 $380,000 Machine-heure 16.000 1,000 23,00 References Direct materials cost Direct labor cost Machine houre Holding Tabrication Total $260,000 260,000 $520,000 $180,000 240.000 $430,000 7,000 26.000 33.000 Deiph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 (Algo) Part 1 < Prev 6 7 of 7 !! Next > MacBook Air SSS FS FT # 3 $ 4 % 5 &7 6 8 9 2 27W E R T Y U O S D F G H J к L X сү B NM

Answer 1

a.

Computation of Departmental predetermined Overhead Rate
	Moding	Fabrication
Fixed Manufacturing Overhead costs	$7,60,000	$2,20,000
Variable Manufacturing Overhead cost [(23000*$4) and (33000*$1.5)]	$92,000	$49,500
Total Estimated Overhead costs (a)	$8,52,000	$2,69,500
/Total Estimated Machine Hours (b)	23000	33000
Departmental Overhead Rate (a/b)	$37.04	$8.17

b.

Computation of Total Manufacturing Costs
	Job D-70	Job C-200
Direct Material Costs	$6,90,000	$5,50,000
Direct Labor Costs	$3,80,000	$4,00,000
Manufacturing Overhead costs (16000*$37.04 + 7000*$8.17) and (7000*$37.04+ 26000*$8.17)	$6,49,830	$4,71,700
Total Manufacturing Costs	$17,19,830	$14,21,700

c.

Computation of Bid Prices
	Job D-70	Job C-200
Total Manufacturing Costs	$17,19,830	$14,21,700
Bid price (Total Manufacturing Costs*150%)	$25,79,745	$21,32,550

d.

Computation of Delph's Cost of Goods sold
Total Manufacturing Costs of Job D-70	$17,19,830
Total Manufacturing Costs of Job C-200	$14,21,700
Total Cost of Goods sold	$31,41,530