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Malakan Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department’s predetermined overhead rate is based on machine-hours and the Finishing 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:

	Machining	Finishing
Machine-hours	18,000	11,000
Direct labor-hours	2,000	9,000
Total fixed manufacturing overhead cost	$ 102,600	$ 96,300
Variable manufacturing overhead per machine-hour	$ 2.10
Variable manufacturing overhead per direct labor-hour		$ 3.90

During the current month the company started and finished Job K368. The following data were recorded for this job:

Job K368:	Machining	Finishing
Machine-hours	80	30
Direct labor-hours	20	40

The amount of overhead applied in the Machining Department to Job K368 is closest to: (Round your intermediate calculations to 2 decimal places.)

▸ $856.00

▸ $168.00

▸ $624.00

▸ $140,400.00

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