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 | 30,000 | 40,000 | 70,000 | ||||
Fixed manufacturing overhead costs | $ | 740,000 | $ | 220,000 | $ | 960,000 | |
Variable manufacturing overhead cost per machine-hour | $ | 5.10 | $ | 5.10 | |||
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 | $ | 374,000 | $ | 323,000 | $ | 697,000 |
Direct labor cost | $ | 230,000 | $ | 170,000 | $ | 400,000 |
Machine-hours | 24,000 | 6,000 | 30,000 | |||
Job C-200: | Molding | Fabrication | Total | |||
Direct materials cost | $ | 260,000 | $ | 260,000 | $ | 520,000 |
Direct labor cost | $ | 180,000 | $ | 280,000 | $ | 460,000 |
Machine-hours | 6,000 | 34,000 | 40,000 | |||
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