How do compute the estimated manufacturing overhead cost

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Tarnish 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:

Question 1: Tarnish industries uses departmental overhead rates and is planning on a $2.60 per machine hour overhead rate for the molding department. Compute the estimated manufacturing overhead cost for the molding department given the information shown in the table.

                          Molding                  Finishing

DL Hours           83,000                   168,500

Machine Hours 106,000                        89,500

Reference no: EM132610665

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