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:

-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

Question

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:

-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

Quizplus · Accepted Answer

The estimated manufacturing overhead cost for the finishing department can be calculated by multiplying the planned overhead rate by the total direct labor hours. Given the overhead rate is $1.80 per direct labor hour, and without the total direct labor hours provided in the question, we cannot directly compute the exact figure. However, the correct choice is identified as B) $288,900, implying that the calculation based on the missing data (total direct labor hours) would result in this figure.

Tarnish Industries Produces Miniature Models of Farm Equipment