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-hours 14,600 12,600Direct labor-hours 5,200 6,300Total fixed manufacturing overhead cost$116,800$49,770Variable 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 CustomizingMachine-hours70 40Direct labor-hours14 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