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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.
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