Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please prepare income statement and calculate cost of unused capacity You this question in the previous attempt Wixis Cabinets makes custom wooden cablnets for high-end

Please prepare income statement and calculate cost of unused capacity image text in transcribed
image text in transcribed
image text in transcribed
You this question in the previous attempt Wixis Cabinets makes custom wooden cablnets 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 182 hours per month. The estimated total manufacturing overhead cost at capacity is $14.924 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $82 per hour of bandsaw use. The results of a recent month's operations appear below: Sales Beginning inventories Direct labor Manufa Selling and administrative expense Actual hours of bandsau use s 5,320 8,850 $14,260 s 8,160 152 Required: -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 perlod expense? Complete this que arch

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

Step: 3

blur-text-image

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

ACCA Approved Study Text P7 Advanced Audit And Assurance

Authors: BPP

1st Edition

1472744349, 978-1472744340

More Books

Students also viewed these Accounting questions

Question

7. Identify four antecedents that influence intercultural contact.

Answered: 1 week ago

Question

5. Describe the relationship between history and identity.

Answered: 1 week ago