Delph Company uses job$-$order costing with a plantwide predetermined overhead rate based on machine$-$hours. At the beginning of the year, the company estimated that $55,000$ machine$-$hours would be required for the periods estimated level of production. It also estimated $$980,000$ of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $$3\mathrm{.}00$ per machine$-$hour.

Because Delph has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine$-$hours. The company gathered the following information to enable calculating departmental overhead rates:

Molding Fabrication Total

Machine$-$hours $25,00030,00055,000$

Fixed manufacturing overhead cost $ $700,000$ $ $280,000$ $ $980,000$

Variable manufacturing overhead cost per machine$-$hour $ $3\mathrm{.}00$ $ $2\mathrm{.}00$

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobsJob 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 $ $370,000$ $ $320,000$ $ $690,000$

Direct labor cost $ $240,000$ $ $140,000$ $ $380,000$

Machine$-$hours $16,0009,00025,000$

Job C$-200$ Molding Fabrication Total

Direct materials cost $ $240,000$ $ $220,000$ $ $460,000$

Direct labor cost $ $100,000$ $ $240,000$ $ $340,000$

Machine$-$hours $9,00021,00030,000$

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

Required:

$1.$ Assume Delph uses plantwide predetermined overhead rates based on machine$-$hours.

Compute the plantwide predetermined overhead rate.

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

If Delph establishes bid prices that are $150\%$ of total manufacturing costs, what bid prices would it have established for Job D$-70$ and Job C$-200?$

What is Delphs cost of goods sold for the year?

Answer rating: 100% (QA)

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