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:
|Fixed manufacturing overhead costs||$||720,000||$||230,000||$||950,000|
|Variable manufacturing overhead cost per machine-hour||$||5.60||$||5.60|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:
|Direct materials cost||$||370,000||$||329,000||$||699,000|
|Direct labor cost||$||250,000||$||130,000||$||380,000|
|Direct materials cost||$||280,000||$||210,000||$||490,000|
|Direct labor cost||$||150,000||$||300,000||$||450,000|
Delph had no underapplied or overapplied manufacturing overhead during the year.
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|
|Direct materials cost||699,000|
|direct labor cost||380,000|
|total manufacturing cost||1,683,503|
|Direct materials cost||490,000|
|direct labor cost||450,000|
|total manufacturing cost||1,722,297|
|1d)||cost of goods sold||3,405,800|
Get Answers For Free
Most questions answered within 1 hours.