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:
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Molding
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Fabrication
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Total
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|
Machine-hours
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20,000
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30,000
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50,000
|
|
Fixed manufacturing overhead costs
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$700,000
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$210,000
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$910,000
|
|
Variable manufacturing overhead cost per machine-hour
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$3.00
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$1.00
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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:
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Job D-70:
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Molding
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Fabrication
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Total
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Direct material cost
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$375,000
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$325,000
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$700,000
|
|
Direct labor cost
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$200,000
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$160,000
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$360,000
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Machine-hours
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14,000
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6,000
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20,000
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|
Job C-200:
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Molding
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Fabrication
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Total
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Direct material cost
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$300,000
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$250,000
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$550,000
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Direct labor cost
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$175,000
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$225,000
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$400,000
|
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Machine-hours
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6,000
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24,000
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30,000
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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:
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Job Alpha
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Direct materials
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?
|
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Direct labor
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?
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Manufacturing overhead applied
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?
|
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Total job cost
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$1,533,500
|
|
Job Omega
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Direct materials
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$235,000
|
|
Direct labor
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345,000
|
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Manufacturing overhead applied
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184,000
|
|
Total job cost
|
$764,000
|
Required -
1. Calculate the plantwide predetermined overhead rate.
2. Complete the job cost sheet for Job Alpha.
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