Coble 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 shaper. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead$33,075 Capacity of the shaper 270hoursActual results: Sales$79,268 Direct materials$12,200 Direct labor$17,400 Actual total fixed manufacturing overhead$33,075 Selling and administrative expense$8,100 Actual hours of shaper use 250hours The cost of unused capacity that would be reported as a period expense on the income statement prepared for
internal management purposes would be closest to:
A. $0
B. $2,450
C. $24,975
D. $25,575
Answer: B
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