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Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following Information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 16,000 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 $ 280,000 $ 100,000 6,000 Fabrication $ 320,000 $ 180,000 6,000 Molding 22,000 $ 760,000 $ 4.00 Fabrication $ 260,000 $ 280,000 28,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Total $ 540,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Total $ 690,000 $ 400,000 22,000 Fabrication 34,000 $ 260,000 $ 2.00 Total 56,000 $ 1,020,000 ulred: Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. o. 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?

Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following Information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 16,000 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 $ 280,000 $ 100,000 6,000 Fabrication $ 320,000 $ 180,000 6,000 Molding 22,000 $ 760,000 $ 4.00 Fabrication $ 260,000 $ 280,000 28,000 Job C-200 Direct materials cost Direct labor cost Machine-hours Total $ 540,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Total $ 690,000 $ 400,000 22,000 Fabrication 34,000 $ 260,000 $ 2.00 Total 56,000 $ 1,020,000 ulred: Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. o. 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following Information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours 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 C-200 Total Direct materials cost $ 540,000 Direct labor cost Machine-hours $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Lequired 2A Molding $ 370,000 $ 220,000 16,000 b D-70 b C-200 Molding $ 280,000 $ 100,000 6,000 Total Manufacturing Cost Fabrication $ 320,000 $ 180,000 6,000 Complete the question by entering your answers in the tabs given below. $ Fabrication $ 260,000 $ 280,000 28,000 2,389,520 Molding 22,000 $ 760,000 $ 4.00 quired: 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? Total $ 690,000 $ 400,000 22,000 Required 2B Required 2C Required 2D ssume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing ost assigned to Job D-70 and Job C-200. ote: Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount. Fabrication 34,000 $ 260,000 $ 2.00 Total 56,000 $ 1,020,000
Transcribed Image Text:Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,020,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following Information to enable calculating departmental overhead rates: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-hours 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 C-200 Total Direct materials cost $ 540,000 Direct labor cost Machine-hours $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Lequired 2A Molding $ 370,000 $ 220,000 16,000 b D-70 b C-200 Molding $ 280,000 $ 100,000 6,000 Total Manufacturing Cost Fabrication $ 320,000 $ 180,000 6,000 Complete the question by entering your answers in the tabs given below. $ Fabrication $ 260,000 $ 280,000 28,000 2,389,520 Molding 22,000 $ 760,000 $ 4.00 quired: 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? Total $ 690,000 $ 400,000 22,000 Required 2B Required 2C Required 2D ssume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing ost assigned to Job D-70 and Job C-200. ote: Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount. Fabrication 34,000 $ 260,000 $ 2.00 Total 56,000 $ 1,020,000
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