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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

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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 Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Casting Customizing 14,000 12,000 5,000 6,000 $112,000 $48,000 $ 2.80 $ 5.60 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 50 Direct labor-hours 10 100 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round you intermediate calculations to 2 decimal places.) 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 $960.00 $81,600.00 $1,360.00 $480.00

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