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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 Fabrication 35,000 $ 780,000 $ 4.00 $ 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 Machine-hours Molding $ 370,000 $ 240,000 15,000 Job C-200 Direct materials cost Molding $ 260,000 Direct labor cost Machine-hours $ 120,000 6,000 Fabrication Total $ 320,000 $ 690,000 $ 120,000 6,000 Fabrication $ 240,000 $ 240,000 29,000 $ 360,000 21,000 Total $ 500,000 $ 360,000 35,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

! 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 Fabrication 35,000 $ 780,000 $ 4.00 $ 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 Machine-hours Molding $ 370,000 $ 240,000 15,000 Job C-200 Direct materials cost Molding $ 260,000 Direct labor cost Machine-hours $ 120,000 6,000 Fabrication Total $ 320,000 $ 690,000 $ 120,000 6,000 Fabrication $ 240,000 $ 240,000 29,000 $ 360,000 21,000 Total $ 500,000 $ 360,000 35,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 14P: Abbey Products Company is studying the results of applying factory overhead to production. The...
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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 Fabrication 35,000 $ 780,000 $ 4.00 $ 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 Machine-hours Molding $ 370,000 $ 240,000 15,000 Job C-200 Direct materials cost Molding $ 260,000 Direct labor cost Machine-hours $ 120,000 6,000 Fabrication Total $ 320,000 $ 690,000 $ 120,000 6,000 Fabrication $ 240,000 $ 240,000 29,000 $ 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 Fabrication 35,000 $ 780,000 $ 4.00 $ 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 Machine-hours Molding $ 370,000 $ 240,000 15,000 Job C-200 Direct materials cost Molding $ 260,000 Direct labor cost Machine-hours $ 120,000 6,000 Fabrication Total $ 320,000 $ 690,000 $ 120,000 6,000 Fabrication $ 240,000 $ 240,000 29,000 $ 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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