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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.
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