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Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year:

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

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob D-70 and Job C-200. It provided the following information related to those two jobs:

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

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

Delph had no overapplied or underapplied manufacturing overhead during the year.

4. Required information

Assume Delph uses a plantwide overhead 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 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

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

1-d.	What is Delphs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

References

eBook & Resources

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

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

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5.

value: 25.00 points

Required information

Assume Delph uses departmental overhead 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 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

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

2-d.	What is Delphs cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

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