[The following information applies to the questions
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:
|Fixed manufacturing overhead costs||$||710,000||$||240,000||$||950,000|
|Variable manufacturing overhead cost per machine-hour||$||5.80||$||5.80|
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:
|Direct materials cost||$||374,000||$||321,000||$||695,000|
|Direct labor cost||$||210,000||$||130,000||$||340,000|
|Direct materials cost||$||280,000||$||260,000||$||540,000|
|Direct labor cost||$||180,000||$||280,000||$||460,000|
Delph had no underapplied or overapplied manufacturing overhead during 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 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?