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1 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 150% of total manufacturing cost, 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?   2 Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine hours. a Compute the plantwide predetermined overhead rate. b Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c If Delph establishes bid prices that are 150% of total manufacturing cost, 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?   3 What managerial insights are revealed by the computations that you performed in this problem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?

1 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 150% of total manufacturing cost, 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?   2 Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on machine hours. a Compute the plantwide predetermined overhead rate. b Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c If Delph establishes bid prices that are 150% of total manufacturing cost, 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?   3 What managerial insights are revealed by the computations that you performed in this problem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 12E: Gerken Fabrication Inc. uses the job order cost system of accounting. The following information was...
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1 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 150% of total manufacturing cost, 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?
 
2 Assume Delph chooses to combine its departmental rates from requirement 1 into a plantwide predetermined overhead rate based on
machine hours.
a Compute the plantwide predetermined overhead rate.
b Compute the total manufacturing cost assigned to Job D-70 and Job C-200.
c If Delph establishes bid prices that are 150% of total manufacturing cost, 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?
 
3 What managerial insights are revealed by the computations that you performed in this problem? (Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?
 
Plantwide and Departmental Predetermined Overhead Rates; Job Costs 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 cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-Hours $ $ Job C-200 Direct materials cost Direct labor cost Machine-Hours $ $ Molding Fabrication 20,000 700,000 $ 3 $ 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 375,000 $ 200,000 $ 14,000 Molding 300,000 $ 175,000 $ 6,000 30,000 210,000 $ 1 Delph had no underapplied or overapplied manufacturing overhead during the year. Fabrication 325,000 $ 160,000 $ 6,000 Fabrication Total 250,000 $ 225,000 $ 24,000 50,000 910,000 Total 700,000 360,000 20,000 Total 550,000 400,000 30,000
Transcribed Image Text:Plantwide and Departmental Predetermined Overhead Rates; Job Costs 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 cost Variable manufacturing overhead cost per machine-hour Job D-70 Direct materials cost Direct labor cost Machine-Hours $ $ Job C-200 Direct materials cost Direct labor cost Machine-Hours $ $ Molding Fabrication 20,000 700,000 $ 3 $ 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 375,000 $ 200,000 $ 14,000 Molding 300,000 $ 175,000 $ 6,000 30,000 210,000 $ 1 Delph had no underapplied or overapplied manufacturing overhead during the year. Fabrication 325,000 $ 160,000 $ 6,000 Fabrication Total 250,000 $ 225,000 $ 24,000 50,000 910,000 Total 700,000 360,000 20,000 Total 550,000 400,000 30,000
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