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 $20,00033,00053,000$

Fixed manufacturing overhead cost $ $740,000$ $ $200,000$ $ $940,000$

Variable manufacturing overhead cost per machine$-$hour $ $3\mathrm{.}00$ $ $1\mathrm{.}00$

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 $ $370,000$ $ $320,000$ $ $690,000$

Direct labor cost $ $220,000$ $ $120,000$ $ $340,000$

Machine$-$hours $17,0003,00020,000$

Job C$-200$ Molding Fabrication Total

Direct materials cost $ $280,000$ $ $220,000$ $ $500,000$

Direct labor cost $ $160,000$ $ $260,000$ $ $420,000$

Machine$-$hours $3,00030,00033,000$

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

Exercise $2-15($Algo$)$ Part $1$

Required:

$1.$ 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?

Answer rating: 100% (QA)

a To compute the departmental predetermined overhead rates based on machinehours we need to divide the estimated total manufacturing overhead costs fo... View the full answer