Answer:
Delph Company
a) Plantwide predetermined overhead rate = $17.68
b) The total manufacturing cost assigned to:
Job D-70 Job C-200
Direct materials cost $ 699,000 $ 500,000
Direct labor cost 400,000 340,000
Manufacturing overhead 720,789 582,811
Total manufacturing cost $ 1,819,789 $ 1,422,811
c) Bid Prices:
Job D-70 Job C-200
150% of total manufacturing cost $2,729,683.50 $2,134,216.50
d) Cost of goods sold:
Job D-70 $ 1,819,789
Job C-200 $ 1,422,811
Total $3,242,600
Explanation:
a) Data and Calculations:
Molding Fabrication Total
Machine-hours 23,000 33,000 56,000
Fixed manufacturing overhead costs $790,000 $200,000 $990,000
Variable overhead cost per machine-hour $5.60 $5.60
Molding Fabrication Total
Job D-70
Direct materials cost $ 371,000 $ 328,000 $ 699,000
Direct labor cost $ 240,000 $ 160,000 $ 400,000
Machine-hours 16,000 7,000 23,000
Job C-200
Direct materials cost $ 290,000 $ 210,000 $ 500,000
Direct labor cost $ 100,000 $ 240,000 $ 340,000
Machine-hours 7,000 26,000 33,000
Plantwide predetermined overhead rate based on machine-hours:
= $990,000/56,000
= $17.68
Manufacturing overhead costs:
Molding Fabrication Total
Fixed manufacturing overhead costs $790,000 $200,000 $990,000
Variable manufacturing overhead 128,800 184,800 313,600
Total manufacturing overhead costs $918,800 $384,800 $1,303,600
Overhead rate
Molding = $39.9478 ($918,800/23,000)
Fabrication = $11.6606 ($384,800/33,000)
Assignment of manufacturing overhead:
Job D-70 Job C-200
Molding $639,165 $279,635
Fabrication 81,624 303,176
Total $720,789 $582,811
