References Exercise 28-1 (Static) Overhead Rate Based on Capacity [L02-6] Wixis Cabinets makes custom wooden cabinets for highend stereo systems from specialty woods. The company uses ajob-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 180 hours per month. The estimated total manufacturing overhead cost at capacity is $14,760 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 5 43,740 Beginning inventories $ 0 Ending inventories $ 0 Direct materials $ 5,350 Direct labor $ 8, 860 Manufacturing overhead incurred $ 14,760 Selling and administrative expense $ 8,180 Actual hours of bandsaw use 150 Required: 1a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. 1b. What was the cost of unused capacity during the month? Complete this question by entering your answers in the table below. Required 1A Required 1B Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period Required: 1a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. 1-b. What was the cost of unused capacity during the month? Complete this question by entering your answers in the table below. Required 1A Required 15 Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. Cost of goods sold Cost of unused capacity Direct materials | Selling and administrative expenses Required 13 > 2.5 points References Ending inventories 5 0 Direct materials $ 5,350 Direct labor $ 8,860 Manufacturing overhead incurred $ 14,760 Selling and administrative expense $ 8,180 Actual hours of bandsaw use 150 Required: 1a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. 1b. What was the cost of unused capacity during the month? Complete this question by entering your answers in the table below. Required 1A Required 18 Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. Required 13 > 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 $ 43,740 Beginning inventories $ 0 Ending inventories $ 0 Direct materials $ 5,350 Direct labor $ 8,860 Manufacturing overhead incurred $ 14,760 Selling and administrative expense $ 8,180 Actual hours of bandsaw use 150 Required: 1a. Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. 1b. What was the cost of unused capacity during the month? Complete this question by entering your answers in the table below. Requhed 1A Requhed 1B What was the cost of unused capacity during the month? Direct materials Sales Selling and administrative expenses