Question $9(7$ points$)$

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

Customizing

Machine$-$hours

$20,000$

$13,000$

Direct labor$-$hours

$1,000$

$7,000$

Total fixed manufacturing overhead cost

$

$152,000$

$

$68,600$

Variable manufacturing overhead per machine$-$hour

$

$2\mathrm{.}10$

Variable manufacturing overhead per direct labor$-$hour

$

$4\mathrm{.}30$

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

a

$$54,110$

b

$$98,700$

c

$$68,600$

d

$$30,100$