Solution-Compute the plantwide predetermined overhead rate

Compute the plantwide predetermined overhead rate

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Reference no: EM132463795

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	26,000	36,000	62,000
Fixed manufacturing overhead costs	$ 750,000	$ 260,000	$1,010,000
Variable manufacturing overhead cost per machine-hour	$ 5.40	$ 5.40

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job 0-70 and Job C-200. It provided the following information related to those two jobs:

Job D-70:		Molding	Fabrication	Total
Direct materials	cost	$ 378,000	$ 322,000	$ 700,000
Direct labor cost		$ 240,000	$ 120,000	$ 360,000
Machine-hours		17,000	9,000	26,000


Job C-200:		Molding	Fabrication	Total
Direct materials	cost	$ 230,000	$ 210,000	$ 440,000
Direct labor cost		$ 150,000	$ 260,000	$ 410,000
Machine-hours		9,000	27,000	36,000

Required: 1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.

Question a. Compute the plantwide predetermined overhead rate.

Question b. Compute the total manufacturing cost assigned to Job 0-70 and Job C-ZOO.

Question c. If Delph establishes bid prices that are 130% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job 8-200?

Question d. What is Delph's cost of goods sold for the year?

Reference no: EM132463795

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Compute the plantwide predetermined overhead rate

Reference no: EM132463795

Reference no: EM132463795

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