Swango 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:

	Casting	Customizing
Machine-hours	19,000	11,000
Direct labor-hours	1,000	8,000
Total fixed manufacturing overhead cost	$138,700	$86,400
Variable manufacturing overhead per machine-hour	$ 1.60
Variable manufacturing overhead per direct labor-hour		$ 3.00

The estimated total manufacturing overhead for the Customizing Department is closest to:

Multiple Choice

• $60,379

• $24,000

• $86,400

• $110,400