Reference no: EM132843037

Question 1 - 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	Fabrication	Total
Machine-hours	20,000	30,000	50,000
Fixed manufacturing overhead costs	$700,000	$210,000	$910,000
Variable manufacturing overhead cost per machine-hour	$3.00	$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:	Molding	Fabrication	Total
Direct material cost	$375,000	$325,000	$700,000
Direct labor cost	$200,000	$160,000	$360,000
Machine-hours	14,000	6,000	20,000

 

Job C-200:	Molding	Fabrication	Total
Direct material cost	$300,000	$250,000	$550,000
Direct labor cost	$175,000	$225,000	$400,000
Machine-hours	6,000	24,000	30,000

Delph had no underapplied or overapplied manufacturing overhead during the year.

Required -

1. Assume Delph uses 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 cost, 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?

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 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?

Question 2 - Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $15 per hour. During the year, the company started and completed only two jobs-Job Alpha, which used 54,500 direct labor-hours, and Job Omega. The job cost sheets for the these two jobs are shown below:

Job Alpha
Direct materials	?
Direct labor	?
Manufacturing overhead applied	?
Total job cost	$1,533,500
Job Omega
Direct materials	$235,000
Direct labor	345,000
Manufacturing overhead applied	184,000
Total job cost	$764,000

Required -

1. Calculate the plantwide predetermined overhead rate.

2. Complete the job cost sheet for Job Alpha.