Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs
ID: 2330776 • Letter: E
Question
Exercise 2-15 Plantwide and Departmental Predetermined Overhead Rates; Job Costs [LO2-1, LO2-2, LO2-3, LO2-4]
[The following information applies to the questions displayed below.]
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:
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:
Delph had no underapplied or overapplied manufacturing overhead during the year.
Exercise 2-15 Part 2
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.
Molding Fabrication Total Machine-hours 31,000 41,000 72,000 Fixed manufacturing overhead costs $ 740,000 $ 210,000 $ 950,000 Variable manufacturing overhead cost per machine-hour $ 5.50 $ 5.50Explanation / Answer
Solution 2a:
Solution 2b:
Compuation of predetermined departmental overhead rates - Delph Company Particulars Molding Fabrication Estimated Variable overhead $170,500.00 $225,500.00 Estimated fixed overhead $740,000.00 $210,000.00 Estimated total manufacturing overhead $910,500.00 $435,500.00 Estimated machine hours 31000 41000 Predetermined overhead rate $29.37 $10.62Related Questions
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