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 makes finely beveled cuts in wood according to the preprogrammed specifications of 189 hours per month. The estimated total manufacturing overhead cost at capacity its constraint, which is time on the automated bandsaw that is $15,120 per month. The company bases its each cabinet. The bandsaw can operate up to overhead rate on capacity, so its predetermined overhead rate is $80 per hour of bandsaw use The results of a recent month's operations appear below Sales Beginning inventories Ending inventories Direct materials Drect labor $43,770 s 5, 370 8,856 $14, 218 $ 8,180 159 overhead incurred Selling and adninistrative expense Actual hours of bandsaw use Required: 1-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