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 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		15,000		21,000
Direct labor-hours		11,000		10,000
Total fixed manufacturing overhead cost	$	46,500	$	38,000
Variable manufacturing overhead per machine-hour	$	1.40
Variable manufacturing overhead per direct labor-hour			$	4.10

The estimated total manufacturing overhead for the Customizing Department is closest to:

Multiple Choice

• $91,600

• $41,000

• $79,000

• $38,000