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Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production

Kroeker Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling 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:

Milling Customizing
Machine-hours 17,000 12,000
Direct labor-hours 1,000 9,000
Total fixed manufacturing overhead cost $ 112,200 $ 81,000
Variable manufacturing overhead per machine-hour $ 1.70
Variable manufacturing overhead per direct labor-hour $ 4.30

During the current month the company started and finished Job T898. The following data were recorded for this job:

Job T898: Milling Customizing
Machine-hours 80 30
Direct labor-hours 20 50

The amount of overhead applied in the Customizing Department to Job T898 is closest to:

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