I almost have this problem solved. I just need help calculating the inventory carrying cost.

The calculation for the inventory carrying cost below is wrong.

An hour of regular time costs the company $12.
Employees are paid $18 per hour on overtime
Labor can be subcontracted at $14 per hour
A maximum of 1,000 overtime hours is available in any month.
A change in the regular level of production (increase or decrease) incurs a one-time cost of $5 per hour for adding or subtracting an hour of labor.
It costs 2 percent per month (6% per quarter) to carry an hour of finished work in inventory.
Materials and overhead costs in inventory are equal to the direct labor costs.
At the beginning of the fall quarter, there are 5,000 standard hours in inventory and the workforce level is equivalent to 10,000 standard hours.
	Fall	Winter	Spring	Summer	Total
Demand Hours	10,000	15,000	8,000	5,000	38,000	9,500
Regular Hours	9,500	9,500	9,500	9,500	9,500
Overtime Hours
Subcontract Hours	-	1,000	-	-
Ending Inventory Hours	4,500.00	-	1,500.00	6,000.00
Ending Inventory $	108,000.00	-	36,000.00	144,000.00
Costs:
Regular Hours	114,000.00	114,000.00	114,000.00	114,000.00	456,000.00
Ovetime Hours
Subcontract	$ -	$ 14,000.00			14,000.00
Change in Production Level					-
Inventory Carrying Cost	$ 6,480.00	$ -	$ 1,080.00	$ 4,320.00	$ 11,880.00
Total	120,480.00	128,000.00	115,080.00	118,320.00	481,880.00