Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding 21,000 $ 740,000 $ 3.00 Fabrication 34,000 $ 200,000 $ 1.50 Total 55,000 $ 940,000 Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 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 $ 370,000 $ 200,000 16,000 Fabrication $ 320,000 $ 180,000 5,000 Job D-70 Direct materials cost Total $ 690,000 $ 380,000 21,000 Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours Molding $ 220,000 $ 140,000 5,000 Fabrication $ 280,000 $ 240,000 29,000 Total $ 500,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. 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?
Required information [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding 21,000 $ 740,000 $ 3.00 Fabrication 34,000 $ 200,000 $ 1.50 Total 55,000 $ 940,000 Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 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 $ 370,000 $ 200,000 16,000 Fabrication $ 320,000 $ 180,000 5,000 Job D-70 Direct materials cost Total $ 690,000 $ 380,000 21,000 Direct labor cost Machine-hours Job C-200 Direct materials cost Direct labor cost Machine-hours Molding $ 220,000 $ 140,000 5,000 Fabrication $ 280,000 $ 240,000 29,000 Total $ 500,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine-hours. 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?
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 16P: Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead,...
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