Garza 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:

Machine$-$hours

Direct labor$-$hours

Total fixed manufacturing overhead cost

Variable manufacturing overhead per machine$-$hour

Variable manufacturing overhead per direct labor$-$hour

The predetermined overhead rate for the Casting Department is closest to:

Casting

$20,000$

$1,000$

$ $152,000$

$ $2\mathrm{.}10$

Customizing

$13,000$

$7,000$

$ $68,600$

$ $4\mathrm{.}30$

Multiple Choice

$$7\mathrm{.}60$ per machine$-$hour

$$9\mathrm{.}70$ per machine$-$hour

$$2\mathrm{.}10$ per machine$-$hour

$$27\mathrm{.}71$ per machine$-$hour