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Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company...

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 21,000 32,000 53,000
Fixed manufacturing overhead cost $ 700,000 $ 280,000 $ 980,000
Variable manufacturing overhead cost per machine-hour $ 3.00 $ 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 $ 240,000 $ 140,000 $ 380,000
Machine-hours 16,000 5,000 21,000

  

Job C-200 Molding Fabrication Total
Direct materials cost $ 280,000 $ 240,000 $ 520,000
Direct labor cost $ 140,000 $ 240,000 $ 380,000
Machine-hours 5,000 27,000 32,000

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

Exercise 2-15 (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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