At the beginning of the current year, Garber Corporation estimated that its manufacturing overhead would be $576,000 and the activity level would be 28,000 machine-hours. The level of activity at capacity is 40,000 machine-hours. The actual manufacturing overhead for the year was $503,700 and the actual level of activity was 28,100 machine-hours.

123. Assume for the purposes of this question only that the actual manufacturing overhead for the year was $551,000 and was entirely fixed. If the company bases its predetermined overhead rate on machine-hours at capacity, then the cost of unused capacity reported on the income statement would have been:

A) $254,210 B) $239,450 C) $259,550 D) $17,900

Wayne applies manufacturing overhead cost to jobs based on direct labor-hours, and the predetermined rate is $5.5 per direct labor-hour. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year. What is the amount of cost of goods manufactured?

A) $482,000 B) $487,500 C) $491,000 D) $484,500