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		20,000		30,000	50,000
Fixed manufacturing overhead costs	$	700,000	$	210,000	$ 910,000
Variable manufacturing overhead cost per machine-hour	$	3.00	$	1.00

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 materials cost	$	375,000	$	325,000	$	700,000
Direct labor cost	$	200,000	$	160,000	$	360,000
Machine-hours		14,000		6,000		20,000

  

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	300,000	$	250,000	$	550,000
Direct labor cost	$	175,000	$	225,000	$	400,000
Machine-hours		6,000		24,000		30,000

Delph had no underapplied or overapplied manufacturing overheadduring the year.

2.Assume Delph uses departmental predetermined overhead ratesbased on machine-hours.

a. Compute the departmental predetermined overhead rates.

b. Compute the total manufacturing cost assigned to Job D-70 andJob C-200.

c. If Delph establishes bid prices that are 150% of totalmanufacturing costs, what bid prices would it have established forJob D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Compute the departmental predetermined overhead rates.

	Pre determined overhead rates Molding Department      Fabrication Department

Compute the total manufacturing cost assigned to Job D-70 andJob C-200.

	Total manufacturing cost Job D-70 Job C-200

If Delph establishes bid prices that are 150% of totalmanufacturing costs, what bid prices would it have established forJob D-70 and Job C-200?

	Bid price Job D-70 Job C-200

What is Delph’s cost of goods sold for the year?

	Cost of goods sold

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