Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

During the current month the company started and finished Job T138. The following data were recorded for this job:

The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)
$264.00
$1,048.00
$528.00
$89,080.00

Transcribed Image Text:

Casting Customizing 13,600 15,600 Machine-hours Direct labor-hours 5,600 6,800 Total fixed manufacturing overhead cost 58,480 95,160 Variable manufacturing overhead per machine-hour 2.30 Variable manufacturing overhead per direct labor-hour 4.50 %24 Job T138: Casting Customizing Machine-hours 30 100 Direct labor-hours 12 80