TB MC Qu$.3-222($Algo$)$ Garza Corporation has two production...

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 $16,00013,000$

Direct labor$-$hours $14,0003,000$

Total fixed manufacturing overhead cost $ $75,200$ $ $10,500$

Variable manufacturing overhead per machine$-$hour $ $1\mathrm{.}30$

Variable manufacturing overhead per direct labor$-$hour $ $4\mathrm{.}40$

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

Multiple Choice

$$136,800$

$$13,200$

$$23,700$

$$10,500$