Assume a company reported the following information for this year:

Budgeted (estimated) production	80,000	units
Budgeted sales	80,000	units
Production capacity	100,000	units
Selling price	$ 50	per unit
Variable manufacturing cost	$ 18	per unit
Estimated total manufacturing overhead cost (all fixed)	$ 700,000
Selling and administrative expenses (all fixed)	$ 250,000
Beginning inventories	$ 0

Using a predetermined overhead rate based on capacity with units produced as the allocation base, the companys budgeted income statement would report unused capacity costs that are closest to:

rev: 04_16_2020_QC_CS-208650, 06_15_2020_QC_CS-208650

Multiple Choice

$190,000

$175,000

$165,000

$140,000