11 he following information applies to the questions display

11 he following information applies to the questions displayed below. 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 64,000 Machine-hours Fixed manufacturing overhead costs Variable manufacturing overhead cost per machine-hour 37,000 790,000 270,000 $1,060,000 27,000 $5.50 5.50 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 373,000 Direct labor cost Machine-hours Molding Fabrication Total 702,000 $ 210,000 120,000 330,000 27,000 329,000 20,000 7,000 Job C-200: Direct materials cost 270,000 Direct labor cost Machine-hours Molding Fabrication Total 250,000 520,000 $ 140,000230,000 370,000 37,000 7,000 30,000

Solution

Requirement 2A Predetermined Overhead Rate Fixed manufacturing overhead cost per MH =Fixed manufacturing Overhead cost/ Machine Hours Molding Fabrication Fixed manufacturing overhead cost per MH = $790,000/27,000 MH = $270,000/37,000 MH = $ 29.26 per MH = $ 7.30 per MH Variable manufacturing Overhead cost per MH = $ 5.5 per MH = $ 5.5 per MH Predetermined Overhead Rate = $ 29.26 + $ 5.5 = $ 7.30 + $ 5.5 = $ 34.76 per MH = $ 12.80 per MH Requirement 2B Manufacturing cost assigned to Job D-70 Molding Dept. Fabrication Amount ($) Direct Materials 373000 329000 Direct labor 210000 120000 Manufacting overhead 695200 89600 (20000X34.76) 7000 X12.8 Total Manufacturing costs 1278200 538600 Manufacturing cost assigned to Job C-200 Molding Dept. Fabrication Amount ($) Direct Materials 270000 250000 Direct labor 140000 230000 Manufacting overhead 243320 384000 (7000X34.76) 30000 X12.8 Total Manufacturing costs 653320 864000