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		20,600		16,600
Direct labor-hours		7,100		8,300
Total fixed manufacturing overhead cost	$	140,080	$	83,000
Variable manufacturing overhead per machine-hour	$	2.40
Variable manufacturing overhead per direct labor-hour			$	4.80

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	80		30
Direct labor-hours	9		60

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

Garrison 16e Rechecks 2017-06-22, 2017-08-01

Multiple Choice

Top of Form

$588.00

$122,840.00

$888.00

$294.00