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:
MoldingFabrication TotalMachine-hours 33,000 43,000 76,000Fixed manufacturing overhead costs$760,000$270,000$1,030,000Variable manufacturing overhead cost per machine-hour$5.50$5.50
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:MoldingFabricationTotalDirect materials cost$378,000$328,000$706,000Direct labor cost$240,000$150,000$390,000Machine-hours 25,000 8,000 33,000
Job C-200:MoldingFabricationTotalDirect materials cost$260,000$300,000$560,000Direct labor cost$120,000$250,000$370,000Machine-hours 8,000 35,000 43,000
Delph had no underapplied or overapplied manufacturing overhead during the year.
Assume Delph uses a plantwide predetermined overhead rate based on machine-hours.
Compute the plantwide predetermined overhead rate..
Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
If Delph establishes bid prices that are 130% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200?
