Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs
ID: 2330519 • Letter: E
Question
Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4]
[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:
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:
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise 2-15 Part 2
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 140% 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?
Molding Fabrication Total Machine-hours 31,000 41,000 72,000 Fixed manufacturing overhead costs $ 740,000 $ 210,000 $ 950,000 Variable manufacturing overhead cost per machine-hour $ 5.50 $ 5.50Explanation / Answer
2a Departmental predetermined overhead rates Molding department Fixed manufacturing overhead (740,000/31000) 23.87 Variable manufacturing overhea 5.50 predetermined overhead rate 29.37 Fabrication department Fixed manufacturing overhead (210000/41000) 5.12 Variable manufacturing overhea 5.50 predetermined overhead rate 10.62 Molding department 29.37 per MH Fabrication department 10.62 per MH 2b) total manufacturing cost assinged job D-70 molding Fabrication total Direct materials cost 378,000 322,000 700,000 direct labor cost 230,000 160,000 390,000 overhead assigned molding 704903 704903 Fabrication 74354 74354 total manufacturing cost 1,312,903 556,354 1,869,257 job c-200 molding Fabrication total Direct materials cost 290,000 230,000 520,000 direct labor cost 160,000 270,000 430,000 overhead assigned molding 32.43*8000 205596.8 205596.8 Fabrication 11.59*28000 12.84*30,000 361146.3 361146.3 total manufacturing cost 655,597 861,146 1,516,743 total manufacturing cost job D-70 1,869,257 Job C-200 1,516,743 2c) Bid price cost job D-70 2,616,960 Job C-200 2,123,440 2d) cost of goods sold 3,386,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.