Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 25,000 $ 720,000 $ 4.00 Fabrication 33,000 $ 280,000 $ 1.50 Total 58,000 $ 1,000,000 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 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 200,000 13,000 Fabrication $ 320,000 $ 140,000 12,000 Job C-200 Direct materials cost $ 260,000 Direct labor cost Machine-hours $ 140,000 12,000 Fabrication $ 220,000 $ 280,000 21,000 Molding Total $ 690,000 $ 340,000 25,000 Total $ 480,000 $ 420,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 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? 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: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Molding 25,000 $ 720,000 $ 4.00 Fabrication 33,000 $ 280,000 $ 1.50 Total 58,000 $ 1,000,000 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 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 200,000 13,000 Fabrication $ 320,000 $ 140,000 12,000 Job C-200 Direct materials cost $ 260,000 Direct labor cost Machine-hours $ 140,000 12,000 Fabrication $ 220,000 $ 280,000 21,000 Molding Total $ 690,000 $ 340,000 25,000 Total $ 480,000 $ 420,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 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?
Expert Answer:
Answer rating: 100% (QA)
Lets go step by step to solve the requirements 1 Compute the departmental predetermined overhead rat... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Delph Company uses a job-order costing system and has two manufacturing departmentsMolding and Fabrication. The company provided the following estimates at the beginning of the year: During the year,...
-
Selenic acid, H2SeO4, is a crystalline substance and a strong acid. Write the electron-dot formula of selenic acid.
-
(a) Explain the terms cost and expense as they are used for financial reporting. The explanation should indicate distinguishing characteristics of the terms, their similarities, and...
-
On January 1, 2018, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal...
-
A \(3.0 \mathrm{~V}\) battery powers a flashlight bulb that has a resistance of \(6.0 \Omega\). How much charge moves through the battery in \(10 \mathrm{~min}\) ?
-
The following internal controls were tested in prior audits. Evaluate each internal control independently and determine which controls must be tested in the current year's audit of the December 31,...
-
How does your culture influence your behavior? How does your culture influence the way you think? How does your culture influence how you express your emotions? How does your culture influence your...
-
A new engineering software is being developed and claim that it is more than 98% compatible with the existing software. A sample of 200 engineering firms tested the new software and 180 of them...
-
Supposed Honda spent $2.1 million to investigate sites for a potential new plant in China. After completed the analysis, Honda found that it must spend an additional $30 million to build and supply...
-
When can contact between members of two cultures improve their attitudes toward each other and facilitate communication between them?
-
Explain briefly each section of Desgin requirement. Design Requirements: Seamless Campus Coverage: The design must ensure comprehensive coverage across the entire corporate campus, ensuring no loss...
-
In what respects are Chamberlin and Robinson clearly in the marginalist or neoclassical tradition? In what respects are they outside the mainstream of that tradition?
-
From what you know so far about the criminal justice system is it realistic to expect that public defense attorneys who have massive caseloads and very limited support staff resources would be able...
-
Mountain air limited manufactures a line of room air purifiers. Management is currently evaluating the possible production of an air purifier for automobiles. Based on an annual volume of 10,000...
-
Consider the circuit of Fig. 7.97. Find v0 (t) if i(0) = 2 A and v(t) = 0. 1 3 ett)
-
Preventing a user who approves a configuration change from being the person who implements the change is an example of which of the following? A. Rotation of duties B. Least privilege C. Segregation...
-
A onedimensional heat conduction problem can be expressed by the following differential equation: where \(k\) is the thermal conductivity, \(T(x)\) is the temperature, and \(Q\) is heat generated per...
-
Consider a simply supported beam of length \(L\) subjected to a uniformly distributed transverse load \(p(x)=p_{0}\). Use the Rayleigh-Ritz method to determine the transverse deflection \(v(x)\) of...
Study smarter with the SolutionInn App