Compute the estimated manufacturing overhead cost

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Question - Stark industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table:

 

Molding

Finishing

Direct labor hours

80,000 DLM

165,500 DLM

Machine Hours

103,000 MH

86,500 MH

Stark industries uses departmental overhead rates and is planning on a $3 per direct labor hour overhead rate for the molding department. Compute the estimated manufacturing overhead cost for the molding department given the information shown in the table.

Reference no: EM133175469

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