Reference no: EM132611328

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:

                                                                                     Casting                    Customizing

Machine-hours                                                  15,000                        12,000

Direct labor-hours                                               4,800                         6,000

Total fixed manufacturing overhead cost                $105,000                         $62,400

Variable manufacturing overhead per machine-hour       $2.30

Variable manufacturing overhead per direct labor-hour $4.50

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                                  60

Direct labor-hours      12                                        70

Question 1: The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)