Zackery Woodworking Corporation produces fine cabinets. The company uses a job-o

Question

Zackery Woodworking Corporation produces fine cabinets. The company uses a job-order overhead rate is based on capacity,. The Additional information is provided below for the most recent month: h its predetermined capacity of the factory is determined by the capacity of its constraint, which is an automated lathe Estimates at the beginning of the month $7,452 Estimated total fixed manufacturing overhead Capacity of the lathe 230 hours ual tota 1 fixed manufacturing overhead $7, 452 reported as a period expense on the income statement prepared for internal manage Prey 3 of 25 Bll Next>

Explanation / Answer

Estimated total fixed Overhead              7,452 Capacity 230 Actual hours used 180 Overhead per hour 32.4 (Estimated overhead/capacity) (7452/230) Unused Hour 50 (capacity-actual usage) (230-180) Period Expense for unused hour 1620 (Overhead per hour*unused hour) Answer:d $1620

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