Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided...

80.2K

Verified Solution

Question

Accounting

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.
Check my work
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.)

Answer & Explanation Solved by verified expert

3.7 Ratings (703 Votes)

Req 4 Plantwide OH rate Fixed OH perr MH 99000076000 1303 Variable OH 59 OH rate per MH 1893 Cost of Jobs Job D70 Job C200 Direct Material 706000 510000 Direct Labour 390000 410000 OH applied 624690 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

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: MoldingFabricationTotal Machine-hours33,00043,000 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:MoldingFabricationTotal Direct materialscost$379,000$327,000$706,000 Direct laborcost$250,000$140,000$390,000 Machine-hours24,0009,00033,000 Job C-200:MoldingFabricationTotal Direct materialscost$220,000$290,000$510,000 Direct laborcost$140,000$270,000$410,000 Machine-hours9,00034,00043,000 Delph had no overapplied or underapplied manufacturing overheadduring the year.4. Required informationAssume 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.) ReferenceseBook & ResourcesWorksheetLearning 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.Check my work5.value:25.00 pointsRequired informationAssume 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.)

	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

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

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.)

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.)