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? 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 57,000 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 $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 23,000 $ 740,000 $ 4.00 Fabrication 34,000 Total 57,000 $ 240,000 $980,000 $ 1.00 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 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 14,000 Job C-200 Molding Direct materials cost $ 260,000 Direct labor cost Machine-hours $ 140,000 9,000 Fabrication $ 320,000 $ 120,000 9,000 Fabrication $ 240,000 $ 240,000 25,000 Total $ 690,000 $ 340,000 23,000 Total $ 500,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year.
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? 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 57,000 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 $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 23,000 $ 740,000 $ 4.00 Fabrication 34,000 Total 57,000 $ 240,000 $980,000 $ 1.00 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 Direct materials cost Direct labor cost Machine-hours Molding $ 370,000 $ 220,000 14,000 Job C-200 Molding Direct materials cost $ 260,000 Direct labor cost Machine-hours $ 140,000 9,000 Fabrication $ 320,000 $ 120,000 9,000 Fabrication $ 240,000 $ 240,000 25,000 Total $ 690,000 $ 340,000 23,000 Total $ 500,000 $ 380,000 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year.
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...
Related questions
Question
Transcribed Image Text: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?
![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 57,000 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 $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
23,000
$ 740,000
$ 4.00
Fabrication
34,000
Total
57,000
$ 240,000
$980,000
$ 1.00
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
Direct materials cost
Direct labor cost
Machine-hours
Molding
$ 370,000
$ 220,000
14,000
Job C-200
Molding
Direct materials cost
$ 260,000
Direct labor cost
Machine-hours
$ 140,000
9,000
Fabrication
$ 320,000
$ 120,000
9,000
Fabrication
$ 240,000
$ 240,000
25,000
Total
$ 690,000
$ 340,000
23,000
Total
$ 500,000
$ 380,000
34,000
Delph had no underapplied or overapplied manufacturing overhead during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F596f56dc-fd71-4583-bad6-f59f67c6edd1%2F2eb9a750-f4f0-4aad-b49e-a3320cfd41f9%2Fc14dqol_processed.png&w=3840&q=75)
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 57,000 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 $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
23,000
$ 740,000
$ 4.00
Fabrication
34,000
Total
57,000
$ 240,000
$980,000
$ 1.00
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
Direct materials cost
Direct labor cost
Machine-hours
Molding
$ 370,000
$ 220,000
14,000
Job C-200
Molding
Direct materials cost
$ 260,000
Direct labor cost
Machine-hours
$ 140,000
9,000
Fabrication
$ 320,000
$ 120,000
9,000
Fabrication
$ 240,000
$ 240,000
25,000
Total
$ 690,000
$ 340,000
23,000
Total
$ 500,000
$ 380,000
34,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning