Mahon 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	14,600	12,600
Direct labor-hours	5,200	6,300
Total fixed manufacturing overhead cost	$116,800	$49,770
Variable manufacturing overhead per machine-hour	$ 1.60
Variable manufacturing overhead per direct labor-hour		$ 3.10

During the current month the company started and finished Job T138. The following data were recorded for this job:

Job T138:	Casting	Customizing
Machine-hours	70	40
Direct labor-hours	14	80

The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $564.00

• $69,300.00

• $880.00

• $282.00