The Pottery Farm makes specialized clay sculptures. Pottery Farm has two distinct production departments that are key to the manufacturing process: Casting and Customizing.

Of course, the Pottery Farm uses a job-order costing system, so they compute predetermined overhead rates separately for 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.

On January 1 of the current year, Pottery Farm came up with the following estimates:

	Casting		Customizing
Machine-hours		14,600		12,600
Direct labor-hours		5,200		6,300
Total fixed manufacturing overhead cost	$	116,800	$	49,770
Variable manufacturing overhead per machine-hour	$	1.60
Variable manufacturing overhead per direct labor-hour			$	3.10

During the current month, Pottery Farm started and finished Job "Tiger138" (the most popular clay sculpture). The following data were recorded for this job:

Job Tiger138:	Casting		Customizing
Machine-hours	70		40
Direct labor-hours	14		80

The amount of overhead applied in the Customizing Department to Job Tiger138 is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-22, 2017-08-01

Multiple Choice

• $69,300.00

• $880.00

• $282.00

• $564.00