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 Customizing 13,000 7,000 $ 68,600 $ 2.10 $ 4.30 $ 152,000 Multiple Choice $2.10 per machine-hour $7.60 per machine-hour $27.71 per machine-hour $9.70 per machine-hour