newconnectmheducationcom and Can ate Up To So its Direct Mat

newconnect.mheducation.com and Can ate Up To So its Direct Mat Wxis Cabinets Makes Custom Solved: S Company had no job apter 2 and 28 Help Save& Exit Submit Check my work 7 Wixis Cabinets makes custom uses a job-order costing system. The capacity of the plant is determined by the capacity of its constraint, which is time on the automated bandsaw each cabinet. The bandsaw can operate up to 189 hours per month. The estimated total manufacturing overhead cost at capacity is $15.876 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $84 per hour of bandsaw use. n cabinets for high-e nd stereo systems from specialty woods. The company that makes finely beveled cuts in wood according to the preprogrammed specifications of ints eBook The results of a recent month\'s operations appear below Print $43,760 Beginning inventories $ 5,380 $ 8,860 $14,270 $ 8,230 159 materials Direct Direct labor nistrative expense Selling and a Actual hours of bandsaw use Required: 1-a. Prepare an income statement that records the cost of unused capacity on the income statement as a period expense. 1-b. How much of the cost of unused capacity can be shown on the income statement as a period expense? ?Prev 7017 Next >

Solution

There are no beginning and ending inventories so all jobs are finished,

Calculating Cost of goods manufactured:

Manufacturing overhead incurred $14270 and Applied manufacturing overhead is $15876 so

Overapplied overheads: 15876 - 14270 = $1606

Income Statement:

Direct Material	5380
Direct Labor	8860
Manufacturing overhead applied (189*84)	15876
Total manufacturing cost charged to job	30116
Add: Beginning W.I.P Inventory	0
Less: Ending W.I.P Inventory	0
Cost of goods manufactured	30116