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:
Molding Finishing
Direct labor hours..........75,000 DLH............160,500 DLH
Machine hours...............98,000 MH...............81,500 MH
1. Tarnish Industries uses departmental overhead rates and is planning on a $2 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.
a. $225,000
b. $196,000
c. $150,000
d. $321,000
e. $471,000
2. Tarnish Industries uses departmental overhead rates and is planning on a $4.10 per machine hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.
a. $307,500
b. $658,050
c. $401,800
d. $334,150
e. $735,950
3. Tarnish Industries uses departmental overhead rates and is planning on a $1.80 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.
a. $41,667
b. $288,900
c. $256,800
d. $146,700
e. $323,100
4. Tarnish Industries uses departmental overhead rates and is planning on a $2 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.
a. $195,000
b. $196,000
c. $163,000
d. $321,000
e. $471,000