Required: 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 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?
Required: 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 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required:
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 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F314f0635-1dd9-4d26-9205-7f03c7b2e19c%2F1b023a00-45b3-4b56-9942-d0cd70145680%2Fdlxv5ns_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
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 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 50,000 machine-hours would be
required for the period's estimated level of production. It also estimated $910,000 of fixed manufacturing
overhead cost for the coming period and variable manufacturing overhead of $1.80 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:
Molding
Fabrication
Total
50,000|
$ 910,000
Machine-hours
30,000
$ 210,000
$ 1.00
20,000
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
$ 700,000
$ 3.00
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
$ 375,000
$ 200,000
14,000
$ 325,000
$ 160,000
6,000
$ 700,000
$ 360,000
20,000
Direct materials cost
Direct labor cost
Machine-hours
Job C-200
Molding
Fabrication
Total
$ 300,000
$ 175,000
6,000
$ 250,000
$ 225,000
24,000
$ 550,000
$ 400,000
30,000
Direct materials cost
Direct labor cost
Machine-hours
Delph had no underapplied or overapplied manufacturing overhead during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F314f0635-1dd9-4d26-9205-7f03c7b2e19c%2F1b023a00-45b3-4b56-9942-d0cd70145680%2Fzyc4su_processed.jpeg&w=3840&q=75)
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 50,000 machine-hours would be
required for the period's estimated level of production. It also estimated $910,000 of fixed manufacturing
overhead cost for the coming period and variable manufacturing overhead of $1.80 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:
Molding
Fabrication
Total
50,000|
$ 910,000
Machine-hours
30,000
$ 210,000
$ 1.00
20,000
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
$ 700,000
$ 3.00
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
$ 375,000
$ 200,000
14,000
$ 325,000
$ 160,000
6,000
$ 700,000
$ 360,000
20,000
Direct materials cost
Direct labor cost
Machine-hours
Job C-200
Molding
Fabrication
Total
$ 300,000
$ 175,000
6,000
$ 250,000
$ 225,000
24,000
$ 550,000
$ 400,000
30,000
Direct materials cost
Direct labor cost
Machine-hours
Delph had no underapplied or overapplied manufacturing overhead during the year.
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