Question

Return to question 26 U Part 2 of 2 2.5 points 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 questione displayed below) Delph Company uses a job order conting system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year Machineboura Molding Patio 33,00 54.000 und manufacturing were con 100.000 1.000 1.000.000 Variable matering avarbando per sine her 4.00 1.00 During the year, the company had no beginning or ending inventories and started, completed, and sold only twojobs Job D.70 and job C 200. It provided the following information related to those twojobs 10 Hold on total Direct materials co $370.00 32,080 4600,000 Direct labore 5321,010 160,000 $300,000 Hechice-hour 14,000 J-200 Direct materialet Bir lahorro Machine how Molding Train Total 5220,000 $100.000 40.000 169.000 220.000 $380,000 7,601 26,00 13,000 Delph had underapplied or overapplied manufacturing overhead during the year

Answer 1

a)	Computation of plantwide predetermined overhead rate
	Particulars				Molding	Fabrication	Total
	Variable manufacturing OH per machine hour				$           4.00	$           1.00
	Machine hours				21000	33000
	Variable manufacturing OH				$ 84,000.00	$ 33,000.00	$   1,17,000.00
	Fixed manufacturing OH						$ 10,80,000.00
	Total manufacturing OH						$ 11,97,000.00
	Total machine hours						54000
	Overhead rate						$              22.17

b)	Computation of manufacturing cost
	Particulars			Job D-70	Job C-200
	Direct Material			$   6,90,000.00	$      4,80,000.00
	Direct Labor			$   3,80,000.00	$      3,80,000.00
	Manufacturing OH			$   4,65,500.00	$      7,31,500.00
				($ 22.17 x 21000)	($ 22.17 x 33000)
	Manufacturing cost			$15,35,500.00	$   15,91,500.00

c)	Computation of bid prices
	Particulars			Job D-70	Job C-200
	Manufacturing cost			$ 15,35,500.00	$    15,91,500.00
	Bid price @ 150%			$23,03,250.00	$   23,87,250.00

d)

Cost of goods sold

$ 31,27,000.00

($ 1535500 + $ 1591500)