Tarnish Industries Produces Miniature Models of Farm Equipment

question 15

Multiple Choice

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:

-Tarnish Industries uses departmental overhead rates and is planning on a $1.80 per direct labor hour overhead rate for the finishing department.Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.

• A)$41,667
• B)$288,900
• C)$256,800
• D)$146,700
• E)$323,100

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Definitions:

Capital Balances

Refers to the amount of capital reported on the balance sheet, including funds contributed by owners or shareholders plus retained earnings.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties.

Profits and Losses

It refers to the financial result of a company's operations, indicating the difference between its revenues and expenses.