Final answer:
To calculate Delph's cost of goods sold for the year, we need to know the number of machine-hours used in each department. With the number of machine-hours, we can calculate the predetermined overhead rate for each department and multiply it by the number of machine-hours to calculate the overhead cost. The cost of goods sold for the year would be the sum of the direct materials cost, direct labor cost, and the overhead cost for each department.
Step-by-step explanation:
To calculate Delph's cost of goods sold for the year, we need more information. The given information provides the cost of labor and the cost of machine per hour, but we need to know the number of machine-hours used in the year for each department. With the number of machine-hours, we can calculate the predetermined overhead rate for each department by dividing the total overhead costs by the total machine-hours. Once we have the predetermined overhead rate for each department, we can multiply it by the number of machine-hours used in each department to calculate the overhead cost for each department. The total cost of goods sold for the year would be the sum of the direct materials cost, direct labor cost, and the overhead cost for each department.
For example:
- Department A: Predetermined overhead rate = Total overhead costs / Total machine-hours
Predetermined overhead rate = $1,320 / Total machine-hours of Department A - Department B: Predetermined overhead rate = Total overhead costs / Total machine-hours
Predetermined overhead rate = $1,360 / Total machine-hours of Department B - Department C: Predetermined overhead rate = Total overhead costs / Total machine-hours
Predetermined overhead rate = $1,400 / Total machine-hours of Department C
Once we have the predetermined overhead rates of each department, we can calculate the overhead cost for each department by multiplying the predetermined overhead rate by the number of machine-hours used in each department.