Question

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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		24,000		33,000		57,000
Fixed manufacturing overhead costs	$	800,000	$	240,000	$	1,040,000
Variable manufacturing overhead cost per machine-hour	$	5.00	$	1.00

  

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	$	200,000	$	140,000	$	340,000
Machine-hours		14,000		10,000		24,000

  

Job C-200:	Molding		Fabrication		Total
Direct materials cost	$	240,000	$	240,000	$	480,000
Direct labor cost	$	140,000	$	280,000	$	420,000
Machine-hours		10,000		23,000		33,000

Delph had no underapplied or overapplied manufacturing overhead during the year.

2. 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 costs, 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?

Complete the question by entering your answers in the tabs given below.

• Required 2A
• Required 2B
• Required 2C
• Required 2D

Compute the departmental predetermined overhead rates. (Round the final answers to 2 decimal places.)

	Pre determined overhead rates Molding Department per MH Fabrication Department per MH

Answer 1