Garza Corporation has two production departments, Casting and Customizing

Garza 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 26,000 15,000 $140,400 $ 1.80 Customizing 24,000 10,000 $41,000 Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour $ 4.60 The estimated total manufacturing overhead for the Customizing Department is closest to: Multiple Choice $209,400 $46,000 $41,000 O O $87,000

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