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 184 hours per month. The estimated total manufacturing overhead cost at capacity is $14,904 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $81 per hour of bandsaw use.

The results of a recent months operations appear below:

Sales	$ 43,770
Beginning inventories	$ 0
Ending inventories	$ 0
Direct materials	$ 5,360
Direct labor	$ 8,830
Manufacturing overhead incurred	$ 14,260
Selling and administrative expense	$ 8,210
Actual hours of bandsaw use	154

Required:

1-a. 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?

Prepare an income statement for the month. Your income statement should include the cost of unused capacity as a period expense. 1-a. 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. What was the cost of unused capacity during the month