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		12,000		19,000
Direct labor-hours		10,000		7,000
Total fixed manufacturing overhead cost	$	42,000	$	38,500
Variable manufacturing overhead per machine-hour	$	1.50
Variable manufacturing overhead per direct labor-hour			$	5.00