TB MC Qu. 17-120 (Algo) Tarnish Industries produces miniature...

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	92,000	DLH	177,500	DLH
Machine hours	115,000	MH	98,500	MH

Tarnish Industries uses departmental overhead rates and is planning on a $5.80 per direct labor hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table.

Multiple Choice

• $533,600

• $1,029,500

• $667,000

• $571,300

• $1,238,300