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options1. 816002. 9603. 13604. 480 25 Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a

options1. 816002. 9603. 13604. 480

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25 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: 01:48 44 Casting Customizing Machine-hours 14, 080 12, 080 Direct labor-hours 5,000 6,000 Total fixed manufacturing overhead cost $ 112, 000 $ 48,900 Variable manufacturing overhead per machine-hour $ 2.80 Variable manufacturing overhead per direct labor-hour $ 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 your intermediate calculations to 2 decimal places.)

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