Question - Champion Roofing builds custom outdoor shelters. These 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.
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Molding
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Finishing
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Machine Hours
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24,000 MH
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128,000 MH
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Direct Labor Hours
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36,400 DLH
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90,000 DLH
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Champion Roofing uses departmental overhead rates and is planning on a $4 per machine hours overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information above.