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Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on...

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Accounting

Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be required for the periods estimated level of production. It also estimated $1,040,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per machine-hour. Because Delph has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following information to enable calculating departmental overhead rates: Molding Fabrication Total Machine-hours 22,000 34,000 56,000

Required:

  1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours.
    1. Compute the plantwide predetermined overhead rate.
    2. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
    3. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?
    4. What is Delphs cost of goods sold for the year?
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