Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18 Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costing system. The capacity of the

image text in transcribedimage text in transcribed

18 Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company 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 that makes finely beveled cuts in wood according to the preprogrammed specifications of each cabinet. The bandsaw can operate up to 180 hours per month. The estimated total manufacturing overhead cost at capacity is $14,580 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $81 per hour of bandsaw use. 10 points The results of a recent month's operations appear below: eBook Print References Sales Beginning inventories Ending inventories Direct materials Direct labor Manufacturing overhead incurred Selling and administrative expense Actual hours of bandsaw use $43,710 $ 0 $ 0 $ 5,370 $ 8,870 $14,200 $ 8,220 150 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? Complete this question by entering your answers in the table below. Required 1A Required 1B Prepare an income statement that records the cost of unused capacity on the income statement as a period expense. Voittiyuu LLLLLLLLS LLLLLYDAVOLOD 18 Actual hours of bandsaw use 150 Required: 10 points 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? eBook Print Complete this question by entering your answers in the table below. References Required 1A Required 1B How much of the cost of unused capacity can be shown on the income statement as a period expense? Cost of unused capacity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp, Loreen Knapp

4th Edition

0324048610, 9780324048612

More Books

Students also viewed these Accounting questions