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 53,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 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 21,000 Fabrication 32,000 $ 800,000 $ 4.00 $ 220,000 $ 2.00 Total 53,000 $ 1,020,000 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: Total $ 320,000 $ 690,000 $ 140,000 4,000 Job D-70 Direct materials cost Direct labor cost Molding $ 370,000 Fabrication Machine-hours $ 240,000 17,000 Job C-200 Direct materials cost Molding $ 240,000 Direct labor cost Machine-hours $ 140,000 4,000 $ 260,000 $ 280,000 28,000 Fabrication $ 380,000 Total 21,000 $ 500,000 $ 420,000 32,000 Delph had no underapplied or overapplied manufacturing overhead during 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 53,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 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 21,000 Fabrication 32,000 $ 800,000 $ 4.00 $ 220,000 $ 2.00 Total 53,000 $ 1,020,000 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: Total $ 320,000 $ 690,000 $ 140,000 4,000 Job D-70 Direct materials cost Direct labor cost Molding $ 370,000 Fabrication Machine-hours $ 240,000 17,000 Job C-200 Direct materials cost Molding $ 240,000 Direct labor cost Machine-hours $ 140,000 4,000 $ 260,000 $ 280,000 28,000 Fabrication $ 380,000 Total 21,000 $ 500,000 $ 420,000 32,000 Delph had no underapplied or overapplied manufacturing overhead during the year.