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Business, 20.02.2020 19:36 o0w0o

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 pre programmed specifications of each cabinet. The bandsaw can operate up to 182 hours per month. The estimated total manufacturing overhead cost at capacity is $15,288 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $84 per hour of bandsaw use. The results of a recent month’s operations appear below: Sales $ 43,700 Beginning inventories $ 0 Ending inventories $ 0 Direct materials $ 5,340 Direct labor $ 8,830 Manufacturing overhead incurred $ 14,210 Selling and administrative expense $ 8,190 Actual hours of bandsaw use 152

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Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The co...
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