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18 Exercise 2B-1 Overhead Rate Based on Capacity [L02-6] 10 points 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 Skipped 188 hours per month. The estimated total manufacturing overhead cost at capacity is $15,792 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $84 per hour of bandsaw use. The results of a recent month's operations appear below: eBook Sales Beginning inventories Ending inventories Direct materials Direct labor Manufacturing overhead incurred Sellisg and administrative expense Actual hours of bandsaw use $43,720 Print $5,360 $8,800 $14,280 8,220 158 Required: 1-a. Prepafe 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 18 Prepare an income statement that records the cost of unused capacity on the income statement as a period expense. Prev 18of 18 ::: Next