Chee [The following information applies to the questions displayed below Delph C
ID: 2397911 • Letter: C
Question
Chee [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 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 37,000 64, 000 s 800, 000 240,000 $1,040,000 27,000 $ 5.70 $5.70 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: Molding FabricationTotal Direct labor cost Machine-hours Direct materials cost 378,000 325,000 $ 703, 000 240, 000 S 140,000 380,000 6,000 27,000 21,000 Molding Fabrication Total Direct labor cost Machine-hours Direct materials cost 210,000 250,000 $460,000 130,000 260,000 $ 390,000 6,000 31,000 37,000 Activate VW Go to Settings PreyNext>Explanation / Answer
Calculation of Predetermined Overhead Rate
Moulding
Fabrication
(A)
Fixed Overheads
$ 800,000.00
$ 240,000.00
(B)
Machine Hours Total
27000
37000
(A/B)
Predetermined Overhead rate
$ 29.63
$ 6.49
Predetermined Overhead rate
Moulding
$ 29.63
Fabrication
$ 6.49
Assignment of Total manufacturing cost
D 70
C-200
Direct material Cost
$ 703,000.00
$ 460,000.00
Direct Labor Cost
$ 380,000.00
$ 390,000.00
Variable Manufacturing Overheads(Machine hours *5.7)
$ 153,900.00
$ 210,900.00
Fixed manufacturing Overheads
$ 800,000.00
$ 240,000.00
Total Manufacturing Cost
$ 2,036,900.00
$ 1,300,900.00
Fixed manufacturing overhead
Moulding
Fabrication
D-70
(29.63*21000)
$ 622,222.22
(6.49*6000)
$ 38,918.92
C-200
(29.63*6000)
$ 177,777.78
(6.49*31000)
$ 201,081.08
$ 800,000.00
$ 240,000.00
Total Manufacturing Cost
D 70
$ 2,036,900.00
C-200
$ 1,300,900.00
Calculation of Bid Price
D-70
C-200
Total Manufacturing Cost
$ 2,036,900.00
$ 1,300,900.00
Markup
50%
50%
Bid Price
$ 3,055,350.00
$ 1,951,350.00
Bid Price
D-70
$ 3,055,350.00
C-200
$ 1,951,350.00
Calculation Cost Of goods sold
D 70
C-200
Total
Direct material Cost
$ 703,000.00
$ 460,000.00
Direct Labor Cost
$ 380,000.00
$ 390,000.00
Variable Manufacturing Overheads(Machine hours *5.7)
$ 153,900.00
$ 210,900.00
Fixed manufacturing Overheads
$ 800,000.00
$ 240,000.00
Cost Of goods sold
$ 2,036,900.00
$ 1,300,900.00
$ 3,337,800.00
Cost of goods sold for the year $ 3,337,800.00
Calculation of Predetermined Overhead Rate
Moulding
Fabrication
(A)
Fixed Overheads
$ 800,000.00
$ 240,000.00
(B)
Machine Hours Total
27000
37000
(A/B)
Predetermined Overhead rate
$ 29.63
$ 6.49
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