q10

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10 For internal reporting purposes, a company applies manufacturing overhead (MOH) using the capacity method (rather than the traditional approach) with machine-hours (MH) as the allocation base. Data for the most recent period are shown below. Prior to the start of the period: Estimated MHs for planned production Estimated MHs at capacity Estimated MOH cost (all fixed) 62,000 MHS 71,300 MHs $ 4,278,000 Actual results for the period: Actual MHs used 62,000 MHS Actual MOH cost $ 4,278,000 For the most recent period, the cost of unused capacity shown on the income statement prepared for internal management purposes would be closest to: A. B. c. D E $ 3,720,000 $ 4,278,000 S 558,000 $ 641.700 None of the above is correct