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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 26,000 36,000 62,000
Fixed manufacturing overhead costs $ 750,000 $ 290,000 $ 1,040,000
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 $ 373,000 $ 326,000 $ 699,000
Direct labor cost $ 220,000 $ 160,000 $ 380,000
Machine-hours 16,000 10,000 26,000
Job C-200: Molding Fabrication Total
Direct materials cost $ 220,000 $ 250,000 $ 470,000
Direct labor cost $ 150,000 $ 220,000 $ 370,000
Machine-hours 10,000 26,000 36,000

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 140% 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?

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