Champion Roofing builds custom outdoor sheltersThese shelters are popular in hot climates. It takes two operations, molding and finishing, to complete the shelters. The planned activities for next year are shown below.

Molding Finishing

Machine Hours 24,000 MH 128,000 MH

Direct Labor Hours 36,400 DLH 90,000 DLH

Champion Roofing uses departmental overhead rates and is planning on a $2 per direct labor hours overhead rate for the molding department. Compute the estimated manufacturing overhead cost for the molding department given the information above.

		$48,000
		$72,800
		$256,000
		$180,000
		$60,400