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Delph Company uses a job-order costing system and has twomanufacturing departments—Molding and Fabrication. The companyprovided the following estimates at the beginning of the year:

  

	Molding		Fabrication		Total
Machine-hours		33,000		43,000	76,000
Fixed manufacturingoverhead costs	$	720,000	$	270,000	$990,000
Variablemanufacturing overhead per machine-hour	$	5.90	$	5.90

  

During the year, the company had no beginning or endinginventories and it started, completed, and sold only two jobs—JobD-70 and Job C-200. It provided the following information relatedto those two jobs:

  

Job D-70:	Molding		Fabrication		Total
Direct materialscost	$	379,000	$	327,000	$	706,000
Direct laborcost	$	250,000	$	140,000	$	390,000
Machine-hours		24,000		9,000		33,000

  

Job C-200:	Molding		Fabrication		Total
Direct materialscost	$	220,000	$	290,000	$	510,000
Direct laborcost	$	140,000	$	270,000	$	410,000
Machine-hours		9,000		34,000		43,000

  
Delph had no overapplied or underapplied manufacturing overheadduring the year.

4. Required information

Assume Delph uses a plantwideoverhead rate based on machine-hours.

  

Required:

1-a.	Compute the predetermined plantwide overhead rate.(Round your answer to 2 decimal places.)

          

1 b.	Compute the total manufacturing costs assigned to Job D-70 andJob C-200. (Round your intermediate calculations to 2decimal places.)

          

1-c.	If Delph establishes bid prices that are 130% of totalmanufacturing costs, what bid price would it have established forJob D-70 and Job C-200? (Round your intermediatecalculations to 2 decimal places.)

          

1-d.	What is Delph’s cost of goods sold for the year? (Roundyour intermediate calculations to 2 decimal places.)

       

References

eBook & Resources

WorksheetLearning Objective: 02-01 Compute apredetermined overhead rate.Learning Objective: 02-03 Compute thetotal cost and average cost per unit of a job.

Difficulty: 2 MediumLearning Objective: 02-02Apply overhead cost to jobs using a predetermined overheadrate.

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5.

value:
25.00 points

Required information

Assume Delph uses departmentaloverhead rates based on machine-hours.

  

2-a.	Compute the predetermined departmental overhead rates.(Round your answer to 2 decimal places.)

         

2-b.	Compute the total manufacturing costs assigned to Job D-70 andJob C-200. (Round your intermediate calculations to 2decimal places.)

          

2-c.	If Delph establishes bid prices that are 130% of totalmanufacturing costs, what bid price would it have established forJob D-70 and Job C-200? (Round your intermediatecalculations to 2 decimal places.)

          

2-d.	What is Delph’s cost of goods sold for the year? (Roundyour intermediate calculations to 2 decimal places.)