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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

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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 16.000 5.000 $112.000 $ 2.80 Customizing 12.000 .00 $48.000 During the current month the company started and finished Job T138. The following data were recorded for this job Casting Customizing Job 7138: Machine-hours Direct labor-hours 100 The amount of overhead applied in the Customizing Department to Job T138 closest to (Round your intermediate calculations to 2 decimal places.) I Multiple Choice O $60.00 o o O $360,00 O $48000 o o 1.000.00

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