Compute the total manufacturing cost assigned to Job D-70 and Job C-200.


To compute the total manufacturing cost assigned to each job (Job D-70 and Job C-200), we'll use the following steps:

1. **Calculate Direct Costs (Materials and Labor) for each job**.
2. **Calculate Manufacturing Overhead Applied** based on the departmental predetermined overhead rates and the machine-hours used in each department.
3. **Sum up the Direct Costs and Applied Overhead** to determine the total manufacturing cost for each job.

### Given Data Recap:

- **Molding Department Predetermined Overhead Rate**: $34.60 per machine-hour
- **Fabrication Department Predetermined Overhead Rate**: $11.09 per machine-hour

#### **Job D-70**

- **Direct Materials Cost**: $370,000 (Molding) + $320,000 (Fabrication) = $690,000
- **Direct Labor Cost**: $220,000 (Molding) + $180,000 (Fabrication) = $400,000
- **Machine-Hours Used**: 14,000 (Molding) + 11,000 (Fabrication) = 25,000

#### **Job C-200**

- **Direct Materials Cost**: $220,000 (Molding) + $260,000 (Fabrication) = $480,000
- **Direct Labor Cost**: $120,000 (Molding) + $280,000 (Fabrication) = $400,000
- **Machine-Hours Used**: 11,000 (Molding) + 22,000 (Fabrication) = 33,000

### 1. **Calculate the Applied Overhead**

#### **For Job D-70**

- **Molding Department Overhead Applied**:
  \[
  14,000 \text{ machine-hours} \times \$34.60/\text{machine-hour} = \$484,400
  \]

- **Fabrication Department Overhead Applied**:
  \[
  11,000 \text{ machine-hours} \times \$11.09/\text{machine-hour} = \$121,990
  \]

- **Total Overhead Applied to Job D-70**:
  \[
  \$484,400 + \$121,990 = \$606,390
  \]

#### **For Job C-200**

- **Molding Department Overhead Applied**:
  \[
  11,000 \text{ machine-hours} \times \$34.60/\text{machine-hour} = \$380,600
  \]

- **Fabrication Department Overhead Applied**:
  \[
  22,000 \text{ machine-hours} \times \$11.09/\text{machine-hour} = \$243,980
  \]

- **Total Overhead Applied to Job C-200**:
  \[
  \$380,600 + \$243,980 = \$624,580
  \]

### 2. **Calculate the Total Manufacturing Costs**

#### **For Job D-70**
- **Total Direct Costs**:
  \[
  \$690,000 \text{ (Direct Materials)} + \$400,000 \text{ (Direct Labor)} = \$1,090,000
  \]

- **Add Overhead Applied**:
  \[
  \$1,090,000 + \$606,390 = \$1,696,390
  \]

#### **For Job C-200**
- **Total Direct Costs**:
  \[
  \$480,000 \text{ (Direct Materials)} + \$400,000 \text{ (Direct Labor)} = \$880,000
  \]

- **Add Overhead Applied**:
  \[
  \$880,000 + \$624,580 = \$1,504,580
  \]

### **Summary of Total Manufacturing Costs:**

- **Total Cost for Job D-70**: \$1,696,390
- **Total Cost for Job C-200**: \$1,504,580

These are the total manufacturing costs assigned to each job, based on the provided data and departmental overhead rates.

Would you like to explore further details, or have any questions on this? Here are some related questions to consider:

1. How would the costs differ if a plantwide overhead rate was used instead of departmental rates?
2. What impact would changes in machine-hours have on the overhead applied to each job?
3. How do the different overhead rates between departments affect the overall job costing?
4. What is the role of accurate machine-hour estimation in the costing process?
5. How might these cost calculations affect the pricing strategy for Delph's products?

**Tip:** Ensure accurate tracking of machine-hours in each department to maintain precise job costing and overhead application.

Learn how to compute the total manufacturing cost assigned to Job D-70 and Job C-200 using detailed cost accounting methods. This problem covers direct costs, overhead calculation based on departmental rates, and total cost aggregation for specific manufacturing jobs.

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