Reference no: EM132475792
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 29,000 39,000 68,000
Fixed manufacturing overhead costs $760,000 $270,000 $1,030,000
Variable manufacturing overhead cost per machine-hour $5.80 $5.80
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 $378,000 $321,000 $699,000
Direct labor cost $230,000 $170,000 $400,000
Machine-hours 23,000 6,000 29,000
Job C-200:
Molding Fabrication Total
Direct materials cost $230,000 $220,000 $450,000
Direct labor cost $140,000 $270,000 $410,000
Machine-hours 6,000 33,000 39,000
- Delph had no underapplied or overapplied manufacturing overhead during the year.
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 D-70 and Job C-200.
Question 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?
Question d. What is Delph's cost of goods sold for the year?