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 Casting 16, 000 14, 000 $75,200 $ 1.30 Customizing 13,000 3,000 $10,500 $ 4.40 The estimated total manufacturing overhead for the Customizing Department is closest to:

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

Multiple Choice

$136.800

$13,200

$23,700

$10,500