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? 2 Assume Delph chooses to combine its departmental rates from requirement 1 into 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? 3 What managerial insights are revealed by the computations that you performed in this problem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?
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? 2 Assume Delph chooses to combine its departmental rates from requirement 1 into 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? 3 What managerial insights are revealed by the computations that you performed in this problem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
1 Assume Delph uses departmental predetermined
a Compute the departmental predetermined overhead rates.
b Compute the total
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?
2 Assume Delph chooses to combine its departmental rates from requirement 1 into 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?
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?
3 What managerial insights are revealed by the computations that you performed in this problem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?
Transcribed Image Text:Plantwide and Departmental Predetermined Overhead Rates; Job Costs
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:
Machine-Hours
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
Job D-70
Direct materials cost
Direct labor cost
Machine-Hours
$
$
Job C-200
Direct materials cost
Direct labor cost
Machine-Hours
$
$
Molding Fabrication
20,000
700,000 $
3 $
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:
$
$
Molding
375,000 $
200,000 $
14,000
Molding
300,000 $
175,000 $
6,000
30,000
210,000 $
1
Delph had no underapplied or overapplied manufacturing overhead during the year.
Fabrication
325,000 $
160,000 $
6,000
Fabrication
Total
250,000 $
225,000 $
24,000
50,000
910,000
Total
700,000
360,000
20,000
Total
550,000
400,000
30,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education