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  3. mahon corporation has two production departments,

Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing...

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Accounting

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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 rato 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 20,400 16,400 Direct labor-hours 7,100 8.200 Total fixed manufacturing overhead cost $ 157,080 S 68,880 Variable manufacturing overhead per machine-hour $1.50 Variable manufacturing overhead per direct labor-hour $ 3.00 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 60 50 Direct labor-hours 10 90 The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.) $93,480.00 $1,026.00 $360.00 $720.00

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