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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 21,000 $740,000 $4.00
Fabrication 34,000 $260,000 $2.00
Total 55,000 $1,000,000
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Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour
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 Direct materials cost Total $370,000 Direct labor cost $320,000 $690,000 $220,000 Machine-hours $160,000 $380,000 14,000 7,000 21,000 Job C-200 Molding Direct materials cost Fabrication Total Direct labor cost $240,000 $240,000 $480,000 Machine-hours $120,000 $300,000 $420,000 7,000 27,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year.
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Exercise2-15(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
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