Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the...
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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 50,000 machine-hours would be required for the period's estimated level of production. It also estimated $910,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.80 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it 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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 20,000 $ 700,000 $ 3.00 Fabrication Total 30,000 $ 210,000 $ 1.00 50,000 $ 910,000 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 Direct materials cost $ 375,000 Direct labor cost Machine-hours $ 200,000 14,000 Fabrication $325,000 $ 160,000 6,000 Total $ 700,000 Job C-200 Molding Fabrication $ 360,000 20,000 Total Direct materials cost $ 300,000 $ 250,000 $ 550,000 Direct labor cost Machine-hours $ 175,000 6,000 $ 225,000 24,000 $ 400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 2. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% 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? 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 50,000 machine-hours would be required for the period's estimated level of production. It also estimated $910,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.80 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-it 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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 20,000 $ 700,000 $ 3.00 Fabrication Total 30,000 $ 210,000 $ 1.00 50,000 $ 910,000 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 Direct materials cost $ 375,000 Direct labor cost Machine-hours $ 200,000 14,000 Fabrication $325,000 $ 160,000 6,000 Total $ 700,000 Job C-200 Molding Fabrication $ 360,000 20,000 Total Direct materials cost $ 300,000 $ 250,000 $ 550,000 Direct labor cost Machine-hours $ 175,000 6,000 $ 225,000 24,000 $ 400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 2. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% 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?
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a Compute the departmental predetermined overhead rates based on machinehours Molding Department Fixed manufacturing overhead cost 700000 Variable man... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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