Samanca 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 preprogrammed specifications of each cabinet. The bandsaw can operate up to 150 hours per month. The estimated total manufacturing overhead at capacity is $11,000 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $74 per hour of bandsaw useThe results of a recent months operations appear below:Sales$39,860Beginning inventories$0Ending inventories$0Direct materials$4,820Direct labor (all variable)$9,640Manufacturing overhead incurred$10,870Selling and administrative expense$9,350Actual hours of bandsaw use124 need to know what would be the dollar amount for the “Cost of Goods Sold”
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