Homework Answers
| Cost of unused capacity |
| predetermined overhead rate at capacity = manufacturing overhead/capacity |
| predetermined overhead rate = 26169/330 = 79.3 |
| cost of unused capacity = unused hour*predermined rate |
| cost of unused capacity = (330-310)*79.3 |
| cost of unnused capacity = 1586 |
| Option "B" is correct that is 1586 |
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