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 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.)

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