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

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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 Customizing 17,800 14,800 6,400 7,400 $ 106,800 $56,240 $ 1.70 $ 3.40 During the current month the company started and finished Job T138. The following data were recorded for this job: Casting Customizing Machine-hours 40 Direct labor-hours 90 Job T138: 90 15 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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