[The following information applies to the questions
displayed below.]
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 | 31,000 | 41,000 | 72,000 | ||||
| Fixed manufacturing overhead costs | $ | 710,000 | $ | 280,000 | $ | 990,000 | |
| 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 | $ | 376,000 | $ | 321,000 | $ | 697,000 |
| Direct labor cost | $ | 220,000 | $ | 130,000 | $ | 350,000 |
| Machine-hours | 21,000 | 10,000 | 31,000 | |||
| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 270,000 | $ | 250,000 | $ | 520,000 |
| Direct labor cost | $ | 170,000 | $ | 290,000 | $ | 460,000 |
| Machine-hours | 10,000 | 31,000 | 41,000 | |||
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise 2-15 Part 1
Required:
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?
In: Accounting
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 32,000 42,000 74,000 Fixed manufacturing overhead costs $ 730,000 $ 230,000 $ 960,000 Variable manufacturing overhead cost per machine-hour $ 5.40 $ 5.40 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 $ 378,000 $ 324,000 $ 702,000 Direct labor cost $ 250,000 $ 160,000 $ 410,000 Machine-hours 25,000 7,000 32,000 Job C-200: Molding Fabrication Total Direct materials cost $ 270,000 $ 210,000 $ 480,000 Direct labor cost $ 100,000 $ 230,000 $ 330,000 Machine-hours 7,000 35,000 42,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 Part 1 Required: 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 130% 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?
In: Accounting
[The following information applies to the questions
displayed below.]
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 | 30,000 | 40,000 | 70,000 | ||||
| Fixed manufacturing overhead costs | $ | 740,000 | $ | 220,000 | $ | 960,000 | |
| Variable manufacturing overhead cost per machine-hour | $ | 5.10 | $ | 5.10 | |||
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 | $ | 374,000 | $ | 323,000 | $ | 697,000 |
| Direct labor cost | $ | 230,000 | $ | 170,000 | $ | 400,000 |
| Machine-hours | 24,000 | 6,000 | 30,000 | |||
| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 260,000 | $ | 260,000 | $ | 520,000 |
| Direct labor cost | $ | 180,000 | $ | 280,000 | $ | 460,000 |
| Machine-hours | 6,000 | 34,000 | 40,000 | |||
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
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 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?
In: Accounting
[The following information applies to the questions displayed below.] 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 27,000 37,000 64,000 Fixed manufacturing overhead costs $ 780,000 $ 240,000 $ 1,020,000 Variable manufacturing overhead cost per machine-hour $ 5.20 $ 5.20 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 $ 329,000 $ 702,000 Direct labor cost $ 230,000 $ 150,000 $ 380,000 Machine-hours 21,000 6,000 27,000 Job C-200: Molding Fabrication Total Direct materials cost $ 280,000 $ 290,000 $ 570,000 Direct labor cost $ 120,000 $ 260,000 $ 380,000 Machine-hours 6,000 31,000 37,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 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 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?
In: Accounting
Required information
[The following information applies to the questions
displayed below.]
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.
rev: 07_28_2020_QC_CS-217627
Required:
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 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?
In: Accounting
Flexible Budget for Assembly Department
Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department:
| Direct labor per filing cabinet | 18 minutes |
| Supervisor salaries | $250,000 per month |
| Depreciation | $18,500 per month |
| Direct labor rate | $28 per hour |
Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.
| Steelcase Inc. | |||
| Assembly Department Budget | |||
| For the Month Ending February 28 (assumed data) | |||
| Units of production | 70,000 | 80,000 | 90,000 |
| Variable cost: | |||
| $ | $ | $ | |
| Total variable cost | $ | $ | $ |
| Fixed cost: | |||
| $ | $ | $ | |
| Total fixed cost | $ | $ | $ |
| Total department costs | $ | $ | $ |
In: Accounting
Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,470 units of Product F and 2,560 units of Product G during the current year. Data relating to the company’s three activity cost pools are given below for the current year:
| Total Activity | ||||||||
| Activity Cost Pools | Total Cost | Product F | Product G | Total | ||||
| Machine setups | $ | 33,440 | 166 | setups | 186 | setups | 352 | setups |
| Purchase orders | $ | 191,250 | 580 | orders | 1,970 | orders | 2,550 | orders |
| Order size | $ | 132,430 | 3,220 | hours | 3,750 | hours | 6,970 | hours |
Required:
Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.)
In: Accounting
Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department:
| Direct labor per filing cabinet | 30 minutes |
| Supervisor salaries | $117,000 per month |
| Depreciation | $29,000 per month |
| Direct labor rate | $15 per hour |
Prepare a flexible budget for 14,000, 18,000, and 21,000 filing cabinets for the month of March in the Assembly Department similar to Exhibit 5. Enter all amounts as positive numbers.
| Cabinaire Inc. | |||
| Assembly Department Budget | |||
| Month Ending March 31 (assumed data) | |||
| Units of production | 14,000 | 18,000 | 21,000 |
| Variable cost: | |||
| $ | $ | $ | |
| Total variable cost | $ | $ | $ |
| Fixed cost: | |||
| $ | $ | $ | |
| Total fixed cost | $ | $ | $ |
| Total department costs | $ | $ | $ |
In: Accounting
Old World Charm, Inc. specializes in selling scented candles. The company has established a policy of reordering inventory every other month (which is 6 times per year). A recently employed MBA has considered New England's inventory problem from the EOQ model viewpoint. If the following constitute the relevant data, what is the extra total cost of the current policy compared with the total cost of the optimal policy? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
Ordering cost = $10 per order
Carrying cost = 20% of purchase price
Purchase price = $15 per unit
Total sales for year = 1,000 units
Safety stock = 0
In: Accounting
The following data relate to factory overhead cost for the production of 6,000 computers:
Actual: Variable factory overhead $152,800 Fixed factory overhead 37,500 Standard: 6,000 hrs. at $30 180,000 If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $195,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $3.75 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variance Amount Favorable/Unfavorable
Variable factory overhead controllable variance
Fixed factory overhead volume variance
Total factory overhead cost variance
In: Accounting