Question

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	$	730,000	$	270,000	$ 1,000,000
Variable manufacturing overhead per machine-hour	$	6.00	$	6.00

  

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	$	380,000	$	327,000	$	707,000
Direct labor cost	$	210,000	$	140,000	$	350,000
Machine-hours		21,000		9,000		30,000

  

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	290,000	$	250,000	$	540,000
Direct labor cost	$	170,000	$	280,000	$	450,000
Machine-hours		9,000		31,000		40,000

  
Delph had no overapplied or underapplied manufacturing overhead during the year.

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

  

Required:

1-a.	Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.)

          

1-b.	Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

  

1-c.	If Delph establishes bid prices that are 130% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

          

1-d.	What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

  

Assume Delph uses departmental overhead rates based on machine-hours.

  

2-a.	Compute the predetermined departmental overhead rates. (Round your answer to 2 decimal places.)

         

2-b.	Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.)

          

2-c.	If Delph establishes bid prices that are 130% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.)

          

2-d.	What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

       

     

Answer 1