Exercise 2-15 Plantwide and Departmental Predetermined OverheadRates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4][The following...Exercise...

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Exercise 2-15 Plantwide and Departmental Predetermined OverheadRates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4]
[The followinginformation applies to the questions displayedbelow.]
Delph Company uses ajob-order costing system and has two manufacturingdepartments—Molding and Fabrication. The company provided thefollowing estimates at the beginning of the year:

Molding Fabrication Total
Machine-hours 31,000 41,000 72,000
Fixedmanufacturing overhead costs $ 740,000 $ 210,000 $ 950,000
Variablemanufacturing overhead cost per machine-hour $ 5.50 $ 5.50

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

Job D-70: Molding Fabrication Total
Direct materialscost $ 378,000 $ 322,000 $ 700,000
Direct laborcost $ 230,000 $ 160,000 $ 390,000
Machine-hours 24,000 7,000 31,000

Job C-200: Molding Fabrication Total
Direct materialscost $ 290,000 $ 230,000 $ 520,000
Direct laborcost $ 160,000 $ 270,000 $ 430,000
Machine-hours 7,000 34,000 41,000
Delph had nounderapplied or overapplied manufacturing overhead during theyear.
Exercise 2-15 Part 1
Required:
1. Assume Delph uses aplantwide predetermined overhead rate based on machine-hours.
a. Compute theplantwide predetermined overhead rate.
b. Compute the totalmanufacturing cost assigned to Job D-70 and Job C-200.

Answer & Explanation Solved by verified expert

3.8 Ratings (366 Votes)

Requirement 1

Part A

A	Variable Overhead rate	$ 5.50	$ 5.50
B	Total machine hours	31,000	41,000	72,000
C = A x B	Total Variable Overhead	$ 170,500	$ 225,500	$ 396,000
D	Total Fixed Overheads	$ 740,000	$ 210,000	$ 950,000
E = C+D	Total manufacturing Overhead			$ 1,346,000
F	Total machine hours			72,000
G = E/F	Plant Wide Overhead rate			$ 18.69	Answer

Part B

	Job D 70	Job C 200
*Molding Department:*
Direct material cost	$ 378,000	$ 290,000
Direct Labor cost	$ 230,000	$ 160,000
Manufacturing Overhead	$ 448,560	$ 130,830

*Fabrication Department:*
Direct material cost	$ 322,000	$ 230,000
Direct Labor cost	$ 160,000	$ 270,000
Manufacturing Overhead	$ 130,830	$ 635,460

Total manufacturing cost assigned	$ 1,669,390	$ 1,716,290	ANSWERS

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In: AccountingExercise 2-15 Plantwide and Departmental Predetermined OverheadRates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4][The following...Exercise 2-15 Plantwide and Departmental Predetermined OverheadRates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4][The followinginformation applies to the questions displayedbelow.]Delph Company uses ajob-order costing system and has two manufacturingdepartments—Molding and Fabrication. The company provided thefollowing estimates at the beginning of the year: MoldingFabricationTotalMachine-hours31,00041,00072,000Fixedmanufacturing overhead costs$740,000$210,000$950,000Variablemanufacturing overhead cost per machine-hour$5.50$5.50 During the year, thecompany had no beginning or ending inventories and it started,completed, and sold only two jobs—Job D-70 and Job C-200. Itprovided the following information related to those two jobs: Job D-70:MoldingFabricationTotalDirect materialscost$378,000$322,000$700,000Direct laborcost$230,000$160,000$390,000Machine-hours24,0007,00031,000 Job C-200:MoldingFabricationTotalDirect materialscost$290,000$230,000$520,000Direct laborcost$160,000$270,000$430,000Machine-hours7,00034,00041,000Delph had nounderapplied or overapplied manufacturing overhead during theyear.Exercise 2-15 Part 1Required:1. Assume Delph uses aplantwide predetermined overhead rate based on machine-hours.a. Compute theplantwide predetermined overhead rate.b. Compute the totalmanufacturing cost assigned to Job D-70 and Job C-200.

	Molding		Fabrication			Total
Machine-hours		31,000		41,000		72,000
Fixedmanufacturing overhead costs	$	740,000	$	210,000	$	950,000
Variablemanufacturing overhead cost per machine-hour	$	5.50	$	5.50

Job D-70:	Molding		Fabrication		Total
Direct materialscost	$	378,000	$	322,000	$	700,000
Direct laborcost	$	230,000	$	160,000	$	390,000
Machine-hours		24,000		7,000		31,000

Job C-200:	Molding		Fabrication		Total
Direct materialscost	$	290,000	$	230,000	$	520,000
Direct laborcost	$	160,000	$	270,000	$	430,000
Machine-hours		7,000		34,000		41,000