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 Machine-hours 21,000 33,000 54, eee Fixed manufacturing overhead cost $740, eee $ 260, eee $1,eee, eee Variable manufacturing overhead cost per machine-hour $ 4.00 $ 1.5e 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-7e Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 370,000 $ 320,000 $698, eee $ 200,000 $ 160,eee $360, eee 15, eee 6,800 21, eee Job C-200 Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 220,000 $ 260,000 $480,000 $160, eee $ 260,eee $420, eee 6,000 27,eee 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

2a) Departmental overhead rate =

Molding overhead rate = (740000/21000+4) = 39.24 per MH

Fabrication overhead rate = (260000/33000+1.5) = 9.38 per MH

2b) Total manufacturing cost

	Job D-70	Job C-200
Direct material	690000	480000
Direct labor	360000	420000
Molding overhead	15000*39.24 = 588600	235440
Fabrication overhead	6000*9.38 = 56280	253260
Total manufacturing cost	1694880	1388700

2c) Bid price

Job D-70 = 1694880*1.5 = $2542320

Job C-200 = 1388700*1.5 = 2083050

2d) Cost of goods sold = 1694880+1388700 = 3083580