Exercise 2-15 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO 2-2, LO2-3, LO2-4] Skip to question [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 53,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 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: Molding Fabrication Total Machine - hours 23,000 30,000 53,000 Fixed manufacturing overhead cost $ 740,000 $240, 000 $ 980,000 Variable manufacturing overhead cost per machine-hour $ 5.00 $2.00 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 Molding Fabrication Total Direct materials cost $ 370,000 $320, 000 $ 690,000 Direct labor cost $ 220,000 $140,000 $360,000 Machine - hours 15,000 8,000 23,000 Job C-200 Molding Fabrication Total Direct materials cost $ 260,000 $ 240,000 $ 500,000 Direct labor cost $ 140,000 $ 220,000 $360,000 Machine - hours 8,000 22,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 (Algo) Part 1 Required: 1. Assume Delph uses plantwide predetermined overhead rates 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? d. What is Delph's cost of goods sold for the year?
Exercise 2-15 (Algo) Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO 2-2, LO2-3, LO2-4] Skip to question [The following information applies to the questions displayed below.] Delph Company uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that 53,000 machine-hours would be required for the period's estimated level of production. It also estimated $980,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $5.00 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: Molding Fabrication Total Machine - hours 23,000 30,000 53,000 Fixed manufacturing overhead cost $ 740,000 $240, 000 $ 980,000 Variable manufacturing overhead cost per machine-hour $ 5.00 $2.00 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 Molding Fabrication Total Direct materials cost $ 370,000 $320, 000 $ 690,000 Direct labor cost $ 220,000 $140,000 $360,000 Machine - hours 15,000 8,000 23,000 Job C-200 Molding Fabrication Total Direct materials cost $ 260,000 $ 240,000 $ 500,000 Direct labor cost $ 140,000 $ 220,000 $360,000 Machine - hours 8,000 22,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Exercise 2-15 (Algo) Part 1 Required: 1. Assume Delph uses plantwide predetermined overhead rates 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? d. What is Delph's cost of goods sold for 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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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Exercise 2-15 (Algo) Plantwide and Departmental
Predetermined Overhead Rates; Job Costs [LO2-1, LO
2-2, LO2-3, LO2-4] Skip to question [The following
information applies to the questions displayed below.]
Delph Company uses a job-order costing system with a
plantwide predetermined overhead rate based on
machine-hours. At the beginning of the year, the
company estimated that 53,000 machine - hours would
be required for the period's estimated level of
production. It also estimated $980,000 of fixed
manufacturing overhead cost for the coming period
and variable manufacturing overhead of $5.00 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: Molding Fabrication Total Machine -
hours 23,000 30,000 53,000 Fixed manufacturing
overhead cost $740, 000 $ 240,000 $ 980,000 Variable
manufacturing overhead cost per machine-hour $ 5.00
$ 2.00 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 Molding Fabrication Total Direct
materials cost $ 370,000 $320, 000 $ 690,000 Direct
labor cost $ 220,000 $140,000 $360,000 Machine -
hours 15,000 8,000 23,000 Job C-200 Molding
Fabrication Total Direct materials cost $ 260,000 $
240,000 $ 500,000 Direct labor cost $ 140,000 $
220,000 $360,000 Machine - hours
8,000 22,000 30,000 Delph had no underapplied or
overapplied manufacturing overhead during the year.
Exercise 2-15 (Algo) Part 1 Required: 1. Assume Delph
uses plantwide predetermined overhead rates 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? 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%2F83b23eec-c845-43b3-a8d5-504419e00655%2Fd3afbdaa-9ce6-44d2-8394-eab15771122c%2Firmfe3q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 2-15 (Algo) Plantwide and Departmental
Predetermined Overhead Rates; Job Costs [LO2-1, LO
2-2, LO2-3, LO2-4] Skip to question [The following
information applies to the questions displayed below.]
Delph Company uses a job-order costing system with a
plantwide predetermined overhead rate based on
machine-hours. At the beginning of the year, the
company estimated that 53,000 machine - hours would
be required for the period's estimated level of
production. It also estimated $980,000 of fixed
manufacturing overhead cost for the coming period
and variable manufacturing overhead of $5.00 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: Molding Fabrication Total Machine -
hours 23,000 30,000 53,000 Fixed manufacturing
overhead cost $740, 000 $ 240,000 $ 980,000 Variable
manufacturing overhead cost per machine-hour $ 5.00
$ 2.00 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 Molding Fabrication Total Direct
materials cost $ 370,000 $320, 000 $ 690,000 Direct
labor cost $ 220,000 $140,000 $360,000 Machine -
hours 15,000 8,000 23,000 Job C-200 Molding
Fabrication Total Direct materials cost $ 260,000 $
240,000 $ 500,000 Direct labor cost $ 140,000 $
220,000 $360,000 Machine - hours
8,000 22,000 30,000 Delph had no underapplied or
overapplied manufacturing overhead during the year.
Exercise 2-15 (Algo) Part 1 Required: 1. Assume Delph
uses plantwide predetermined overhead rates 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? d. What is
Delph's cost of goods sold for the year?
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