1-a. 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?

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 Required 14 Required 18 185 hours per month. The estimated total manufacturing overhead cost at capacity is $15,355 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $83 per hour of bandsaw use. How much of the cost of unused capacity can be shown on the income statement as a period expense? The results of a recent month's operations appear below: Cost of unused capacity Beginning Inventories $49 .760 Ending inventories parect materials canfracturing overhead incurred Actual hours of bandsaw use 14-280 -180 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 14 Required 1B Prepare an income statement that records the cost of unused capacity on the income statement as a period expense. Wixis Cabinets Income Statement Other expenses