Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,000,000 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 23,000 Fabrication $ 700,000 $ 4.00 33,000 $ 300,000 $ 1.00 Total 56,000 $ 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-hour's Molding $ 370,000 Fabrication Total $ 320,000 $ 690,000 $ 220,000 13,000 Molding $220,000 $ 160,000 10,000 Fabrication Job C-200 Direct materials cost Direct labor cost $ 180,000 Machine-hours 10,000 $ 200,000 $220,000 23,000 $ 380,000 23,000 Total $420,000 $ 400,000 33,000 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? Complete this question by entering your answers in the tabs given below. Required 2A Required 2B Required 2C Required 20 Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. Note: Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount. Total Manufacturing Job D-70 Job C-200 Cost < Required 2A Required 2C > 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 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,000,000 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 23,000 Fabrication $ 700,000 $ 4.00 33,000 $ 300,000 $ 1.00 Total 56,000 $ 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-hour's Molding $ 370,000 Fabrication Total $ 320,000 $ 690,000 $ 220,000 13,000 Molding $220,000 $ 160,000 10,000 Fabrication Job C-200 Direct materials cost Direct labor cost $ 180,000 Machine-hours 10,000 $ 200,000 $220,000 23,000 $ 380,000 23,000 Total $420,000 $ 400,000 33,000 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? Complete this question by entering your answers in the tabs given below. Required 2A Required 2B Required 2C Required 20 Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. Note: Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount. Total Manufacturing Job D-70 Job C-200 Cost < Required 2A Required 2C >
Expert 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
-
ed The Engine Guys produces specialized engines for "snow climber buses. The company's normal monthly production volume is 2,500 engines, whereas its monthly production capacity is 5,000 engines. The...
-
Nadia spends her money on cheese pizza and frozen yogurt. Her utility function is U(C, F) = (C + 2) x (F + 3), where C represents ounces of cheese pizza and F represents pints of frozen yogurt...
-
A class has a total of 40 people. While resting or sitting doing class work most of the body heat (about 70%) is dissipated in the form of sensible heat through convection and radiation. If the BMR...
-
(a) Show that for Poiseuille flow in a tube of radius \(R\) the magnitude of the wall shearing stress, \(\tau_{r z}\), can be obtained from the relationship \[ \left|\left(\tau_{r z} ight)_{\text...
-
Refer to your results from Short Exercises S23- 6 and S23- 7. Exercises S23- 6 Johnson, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.8 pound per glass...
-
Think of a problem you have had and how you might externalize it. How do you think you might address this problem now that it has been externalized?
-
The process that occurs when a hockey goalie stops a puck is an example of feedback or feedforward control? Explain and draw the block diagram of the control system. List all possible disturbances...
-
Case Type: Head case Main subjects: Harrasment, Open-Door Policy, Trust Who's Who: Paul Bello, Purchasing Manager Anisa Schumacher, Purchasing Agent Corey Widman, Bellman "May I have a confidential...
-
Telluride Mining Company purchased a new building to store its increasing supply of mining equipment. The building was purchased for $ 5 4 0 , 0 0 0 . The purchase price did not include $ 2 0 , 0 0 0...
-
Requirements for this case analysis: Problem statement Discussion of first, second, third key issues Recommendation - executive summary First alternative with pros and cons, second alternative with...
-
Bigco Corporation is one of the nation's leading distributors of food and related products to restaurants, universities, hotels, and other customers. A simplified version of its recent income...
-
Utah Cloudberry, Inc. (UCI) is an area developer of Cloudberry franchises in the state of Utah. UCI has opened several Cloudberry outlets, including one in Salt Lake City near the University of Utah....
-
Provide comprehensive answers to the following questions. Remember to support your arguments where necessary by websites and pictures. 1. How do long-exposure photos of two selected area of the sky...
-
What types of questions can be answered by analyzing financial statements?
-
Consider a process with the following streams: When \(\Delta T_{\text {min }}=10^{\circ} \mathrm{C}\), the minimum utilities for heating and cooling are \(237 \mathrm{~kW}\) and \(145 \mathrm{~kW}\),...
-
Figure 11.64 presents the PFD of a process for the production of organic fibers (Smith, 2005). In the process, the organic solvent is removed from the fibers in dryer D-100 using circulated warmed...
-
Consider a process with the following streams: (a) Determine MER targets for \(\Delta T_{\text {min }}=10^{\circ} \mathrm{C}\). (b) Design a HEN for MER using no more than 10 heat exchangers...
Study smarter with the SolutionInn App