1.

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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Casting		Customizing
Machine-hours		18,000		14,000
Direct labor-hours		2,000		7,000
Total fixed manufacturing overhead cost	$	124,200	$	68,600
Variable manufacturing overhead per machine-hour	$	1.90
Variable manufacturing overhead per direct labor-hour			$	3.80

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

Job T138:	Casting		Customizing
Machine-hours	70		30
Direct labor-hours	10		60

The amount of overhead applied in the Customizing Department to Job T138 is closest to:

2.

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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Casting		Customizing
Machine-hours		16,200		12,200
Direct labor-hours		5,100		6,100
Total fixed manufacturing overhead cost	$	81,000	$	65,880
Variable manufacturing overhead per machine-hour	$	2.40
Variable manufacturing overhead per direct labor-hour			$	4.80

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

Job T138:	Casting		Customizing
Machine-hours	70		50
Direct labor-hours	15		80

The amount of overhead applied in the Customizing Department to Job T138 is closest to: