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Compute the estimated manufacturing overhead cost

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Question - Champion Roofing builds custom outdoor shelters. These shelters are popular in hot climates. It takes two operations, molding and finishing, to complete the shelters. The planned activities for next year are shown below.

 

Molding

Finishing

Machine Hours

24,000 MH

128,000 MH

Direct Labor Hours

36,400 DLH

90,000 DLH

Champion Roofing uses departmental overhead rates and is planning on a $4 per machine hours overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information above.

Reference no: EM132098089

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