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Exercise $2-15($Algo$)$ Plantwide and Departmental Predetermined Overhead Rates; Job Costs $[$LO$2-1,$ LO$2-2,$ LO$2-3,$ LO$2-4]$

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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 $21,00035,00056,000$

Fixed manufacturing overhead cost $ $720,000$ $ $220,000$ $ $940,000$

Variable manufacturing overhead cost per machine$-$hour $ $4\mathrm{.}00$ $ $1\mathrm{.}00$

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 $ $220,000$ $ $140,000$ $ $360,000$

Machine$-$hours $16,0005,00021,000$

Job C$-200$ Molding Fabrication Total

Direct materials cost $ $200,000$ $ $280,000$ $ $480,000$

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

Machine$-$hours $5,00030,00035,000$

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?