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:
|Fixed manufacturing overhead costs||$||780,000||$||300,000||$||1,080,000|
|Variable manufacturing overhead cost per machine-hour||$||6.00||$||6.00|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:
|Direct materials cost||$||375,000||$||326,000||$||701,000|
|Direct labor cost||$||240,000||$||140,000||$||380,000|
|Direct materials cost||$||250,000||$||260,000||$||510,000|
|Direct labor cost||$||160,000||$||240,000||$||400,000|
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise 2-15 Part 1
1. Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
c. If Delph establishes bid prices that are 140% 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? Get Accounting homework help today