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Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes overhead rate in each production department. The

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Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the fe 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 17,600 6,200 $88,000 $ 3.00 Customizing 14,600 7,3ee $69, 350 $ 5.90 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138: Machine-hours Direct labor-hours Casting Customizing 70 30 9 90 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations 2 decimal Multiple Choice $639.00 ul. Wound your le Multiple Choice $639.00 $112,420.00 $1,386.00 $319.50

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