Mahon 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 16,200 12,200
Direct labor-hours 5,100 6,100
Total fixed manufacturing overhead cost $ 81,000 65,880
Variable manufacturing overhead per machine-hour $ 2.40
Variable manufacturing overhead per direct labor-hour $ 4.80

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 100 30
Direct labor-hours 12 80

The amount of overhead applied in the Customizing Department to Job T138 is closest to ________. (Round your intermediate calculations to 2 decimal places.)

Job T138 utilized 30 machine-hours and 80 direct labor-hours, thus the variable manufacturing overhead is $456 (= 30 * Variable manufacturing overhead per machine-hour $ 2.40 + 80 * Variable manufacturing overhead per direct labor-hour $ 4.80)

Because Customizing Department’s predetermined overhead rate is based on direct labor-hours, so total fixed manufacturing overhead cost for Customizing Department $65,880 is for 6,100 direct labor-hours, then $10.8 is fixed manufacturing overhead cost per 1 direct labor-hours (=$65,880/ 6100)

Job T138 utilized 80 direct labor-hours, then the fixed manufacturing overhead is $864 (= 80 * 10.8)

The total overhead for Job T138 = variable $456 + fixed $864 = $1,320