[The following information applies to the questions displayed below.] 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: MoldingFinishingDirect labor hours 75,000DLH 160,500DLHMachine hours 98,000MH 81,500MHTarnish 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. $321,000
B. $195,000
C. $196,000
D. $471,000
E. $163,000
Answer: C
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