Question

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

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

 Molding Fabrication Total Machine-hours 34,000 44,000 78,000 Fixed manufacturing overhead costs \$ 720,000 \$ 230,000 \$ 950,000 Variable manufacturing overhead cost per machine-hour \$ 5.60 \$ 5.60

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job 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 \$ 370,000 \$ 329,000 \$ 699,000 Direct labor cost \$ 250,000 \$ 130,000 \$ 380,000 Machine-hours 25,000 9,000 34,000

 Job C-200: Molding Fabrication Total Direct materials cost \$ 280,000 \$ 210,000 \$ 490,000 Direct labor cost \$ 150,000 \$ 300,000 \$ 450,000 Machine-hours 9,000 35,000 44,000

Required:

1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.

a. Compute the plantwide predetermined overhead rate.

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

c. If Delph establishes bid prices that are 140% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?

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

 1a) predetermined overhead rate variable overhead rate 5.6 fixed manufacturing overhead (950,000/78000)= 12.18 predetermined overhead rate 17.78 1b) total manufacturing cost assinged D-70 Direct materials cost 699,000 direct labor cost 380,000 overhead assigned 604503 total manufacturing cost 1,683,503 job c-200 Direct materials cost 490,000 direct labor cost 450,000 overhead assigned 782297 total manufacturing cost 1,722,297 total manufacturing cost job D-70 1,683,503 Job C-200 1,722,297 1c) Bid price cost job D-70 2,356,904 Job C-200 2,411,216 1d) cost of goods sold 3,405,800

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• Design a half-wave length wire dipole antenna to be used as an external antenna of a...
• The solution to the Initial value problem ?″+2?′+82?=4cos(9?),?(0)=0,?′(0)=0 is the sum of the steady periodic solution...
• Decrypt the following message that is encrypted with a basic alphabetic shift cipher. What is the...
• condition swyer syndrome 1a) Describe gonad development in the individual with the condition you have chosen:...
• The value of informal long-term care provided by family members and friends is estimated at over...
• Find the 11th term in this sequence: 1,9,17,25,33… Find the 29th term in this sequence: −8,−5,−2,1,4…...
• Why don’t firms in a competitive market have excess capacity in the long run? A. A...
• In C programming language write a function that takes an integer n as input and prints...
• Part A)Discuss cost-related motives for direct foreign investments. Part B) Why do host governments prefer more...
• Consider a molecule that can be in one of two different conformation states A or B....
• Atropine (an anti-cholinergic medication) blocks muscarinic receptors. Which of the following symptoms would you expect to...