Heritage Industries Produces Miniature Models of Farm Equipment

Heritage 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 below.

-Heritage 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 above.

A) $195,000
B) $162,500
C) $130,000
D) $325,000
E) $357,500