Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing 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 $1,000,000 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 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 17,000 Molding $ 280,000 $ 140,000 3,000 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: Fabrication $ 320,000 $ 160,000 3,000 Fabrication $ 280,000 $ 220,000 27,000 Molding 20,000 $ 740,000 $ 4.00 Total $ 690,000 $ 380,000 20,000 Total $ 560,000 $360,000 30,000 Fabrication Delph had no underapplied or overapplied manufacturing overhead during the year. 30,000 $ 260,000 $ 2.00 Total 50,000 $ 1,000,000
Required information [The following information applies to the questions displayed below.] Delph Company uses job-order costing 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 $1,000,000 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 Job C-200 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 17,000 Molding $ 280,000 $ 140,000 3,000 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: Fabrication $ 320,000 $ 160,000 3,000 Fabrication $ 280,000 $ 220,000 27,000 Molding 20,000 $ 740,000 $ 4.00 Total $ 690,000 $ 380,000 20,000 Total $ 560,000 $360,000 30,000 Fabrication Delph had no underapplied or overapplied manufacturing overhead during the year. 30,000 $ 260,000 $ 2.00 Total 50,000 $ 1,000,000
Chapter1: Financial Statements And Business Decisions
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![Required information
[The following information applies to the questions displayed below.]
Delph Company uses job-order costing 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 $1,000,000 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
Job C-200
Direct materials cost
Direct labor cost
Machine-hours
Molding
$ 370,000
$ 220,000
17,000
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
$ 140,000
3,000
Fabrication
$ 320,000
$ 160,000
3,000
Molding
20,000
$ 740,000
$ 4.00
Fabrication
$ 280,000
$ 220,000
27,000
Total
$ 690,000
$ 380,000
20,000
Total
$ 560,000
$ 360,000
30,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Fabrication
30,000
$ 260,000
$2.00
Required:
1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours.
Total
50,000
$ 1,000,000
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 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66798cf1-a203-4939-93f3-81ce39889947%2F002123cc-1825-441a-b344-8cff1d8fda30%2Focnvsw2_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Delph Company uses job-order costing 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 $1,000,000 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
Job C-200
Direct materials cost
Direct labor cost
Machine-hours
Molding
$ 370,000
$ 220,000
17,000
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
$ 140,000
3,000
Fabrication
$ 320,000
$ 160,000
3,000
Molding
20,000
$ 740,000
$ 4.00
Fabrication
$ 280,000
$ 220,000
27,000
Total
$ 690,000
$ 380,000
20,000
Total
$ 560,000
$ 360,000
30,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Fabrication
30,000
$ 260,000
$2.00
Required:
1. Assume Delph uses plantwide predetermined overhead rates based on machine-hours.
Total
50,000
$ 1,000,000
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 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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