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 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,040,000 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 Molding 21,000 $780,000 $ 4.00 Fabrication 35,000 $ 260,000 $ 1.00 Total 56,000 $ 1,040,000 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: Job D-70 Direct materials cost Direct labor cost Molding $ 370,000 $ 240,000 15,000 Fabrication $ 320,000 $ 120,000 6,000 Fabrication Machine-hours Job C-200 Direct materials cost Molding $ 260,000 Direct labor cost Machine-hours $ 120,000 6,000 $ 240,000 $ 240,000 29,000 Total $ 690,000 $ 360,000 21,000 Total $ 500,000 $ 360,000 35,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
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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 56,000 machine-hours would be required for the period's estimated
level of production. It also estimated $1,040,000 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
Molding
21,000
$780,000
$ 4.00
Fabrication
35,000
$ 260,000
$ 1.00
Total
56,000
$ 1,040,000
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:
Job D-70
Direct materials cost
Direct labor cost
Molding
$ 370,000
$ 240,000
15,000
Fabrication
$ 320,000
$ 120,000
6,000
Fabrication
Machine-hours
Job C-200
Direct materials cost
Molding
$ 260,000
Direct labor cost
Machine-hours
$ 120,000
6,000
$ 240,000
$ 240,000
29,000
Total
$ 690,000
$ 360,000
21,000
Total
$ 500,000
$ 360,000
35,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
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 56,000 machine-hours would be required for the period's estimated level of production. It also estimated $1,040,000 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 Molding 21,000 $780,000 $ 4.00 Fabrication 35,000 $ 260,000 $ 1.00 Total 56,000 $ 1,040,000 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: Job D-70 Direct materials cost Direct labor cost Molding $ 370,000 $ 240,000 15,000 Fabrication $ 320,000 $ 120,000 6,000 Fabrication Machine-hours Job C-200 Direct materials cost Molding $ 260,000 Direct labor cost Machine-hours $ 120,000 6,000 $ 240,000 $ 240,000 29,000 Total $ 690,000 $ 360,000 21,000 Total $ 500,000 $ 360,000 35,000 Delph had no underapplied or overapplied manufacturing overhead during the year.
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