Risser Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated jointer. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead$14,256 Capacity of the jointer 240hoursActual results: Sales$62,310 Direct materials$14,100 Direct labor$16,000 Actual total fixed manufacturing overhead$14,256 Selling and administrative expense$8,900 Actual hours of jointer use 220hours The gross margin that would be reported on the income statement prepared for internal management purposes
would be closest to:
A. $62,310
B. $17,954
C. $19,142
D. $10,242
Answer: C
Business
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