Question

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: Total 66,000 Molding Fabrication Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 28,000 38,000 260,000 $1,000,000 $ 740,000 $ 6.00$ 6.00 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: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $. 373,000 $. 324,000 697,000 $ 210,000 $140,000 350,000 20,000 8,000 28,000 Job C-200: Direct materials cost Direct labor cost Machine-hours Molding Fabrication Total $ 290,000 240,000 530,000 260,000 410,000 38,000 $. 150,000 8,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

Answer 1

OH rate:
Molding:
Total fixed OH		740000
Divide: Total MH		28000
Fixed Ohh per MH			26.43
Variable OH per MH			6
TotalOH rate per MH			32.43
Fabrication:
Total fixed OH		260000
Divide: Total MH		38000
Fixed Ohh per MH			6.84
Variable OH per MH			6
TotalOH rate per MH			12.84
Req b.
			Job D-70	Job C-200
Material
Molding			373000	290000
fabrication			324000	240000
Direct Labour
Molding			210000	150000
fabrication			140000	260000
Overheads
Molding @ 32.43			648600	259440
Fabrocation @ 12.84			102720	385200
Total cost			1798320	1584640
Req c:			Job D-70	Job C-200
Manufacturing cost			1798320	1584640
Add: markup @40%			719328	633856
Bid price			2517648	2218496
Req d:
Cost of good ssold:
Job D-70			1798320
Job C-200			1584640
Cost of good ssold:			3382960