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:

CastingCustomizingMachine-hours17,80013,800Direct labor-hours5,8006,900Total fixed manufacturing overhead cost$ 122,820$ 75,900Variable manufacturing overhead per machine-hour$ 2.50Variable manufacturing overhead per direct labor-hour$ 4.90

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

Job T138:CastingCustomizingMachine-hours6040Direct labor-hours960

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

$832.00

$109,710.00

$954.00

$416.00