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:
Molding Fabrication Total
Machine-hours 23,000 33,000 56,000
Fixed manufacturing overhead costs $790,000 $200,000
$990,000
Variable manufacturing overhead cost per machine-hour $5.60 $5.60
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: Molding Fabrication Total
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: Molding Fabrication Total
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
Delph had no underapplied or overapplied manufacturing overhead during the year.
Required:
1. Assume Delph uses 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?