ACC 212 Managerial Accounting - Chapter 3B HW - 04-02

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Feb 20, 2024

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Chapter 3b HW €@ Submitted 13.13/30 Total points awarded Exit Help o You skipped this question in the previous attempt. Explanation Show my answers V'S ! N Part 2 of 2 Required information [The following information applies to the questions displayed below.] 0/7.5 Delph Company uses job-order costing with a plantwide predetermined overhead rate based on machine-hours. At the points awarded beginning of the year, the company estimated that 56,000 machine-hours would be required for the period’s estimated level of production. It also estimated $1,000,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $4.00 per machine-hour. Because Delph has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide “—i overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following feformnce information to enable calculating departmental overhead rates: eferences Molcing Fabrication Total Machine-hours 22,000 34,000 56,000 Fixed manufacturing overhead cost $ 780,000 $ 220,000 $ 1,000,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 2.00 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 Molding Fabrication Total Direct materials cost $ 370,000 $ 328,000 ¢ 690,000 Direct labor cost $ 240,000 $ 160,000 $ 400,000 Machine-hours 13,000 9,000 22,000 Job C-200 Molding Fabrication Total Direct materials cost $ 280,000 $ 220,000 $ 500,000 Direct labor cost $ 100,000 $ 220,000 $ 320,000 Machine-hours 9,000 25,0008 34,000 Delph had no underapplied or overapplied manufacturing overhead during the year. Required: 2. 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-2007? d. What is Delph’s cost of goods sold for the year? Complete this question by entering your answers in the tabs given below, Required 2A | Required 2B | Required 2C | Required 2D Assume Delph uses departmental predetermined overhead rates based on machine-hours. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. Note: Round your intermediate calculations to 2 decimal places. Round your final answers to nearest whole dollar amount. Total Manufacturing Cost Job D-70 $ 1,679,080 -on Job C-200 $ 1,386,800~ -0 < Required 2A Required 2C 2> Explanation 2. a. Molding Department: Using the eguation Y= a+ bX, the estimated total manufacturing overhead cost would be depicted as follows: Y = $780,000 + ($4.00 per MH)(22,000 MHs) Estimated fixed manufacturing overhead $ 780,000 Estimated variable manufacturing overhead: $4.00 per MH x 22,000 MHs 88,000 Estimated total manufacturing overhead cost $ 868,000 The predetermined overhead rate is computed as follows: Estimated total manufacturing overhead (a) $ 868,000 Ectimatad +n+tal marhina_hniine (h)\ 27 00a MUc (<] % < Prev 4 of 4 Next >

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