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		15,000		12,000
Direct labor-hours		4,800		6,000
Total fixed manufacturing overhead cost	$	105,000	$	62,400
Variable manufacturing overhead per machine-hour	$	2.30
Variable manufacturing overhead per direct labor-hour			$	4.50

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		60
Direct labor-hours	12		70

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

• $1,164.00

• $89,400.00

• $1,043.00

• $582.00