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 use The results of a recent months operations appear below: Sales $ 39,860 Beginning inventories $ 0 Ending inventories $ 0 Direct materials $ 4,820 Direct labor (all variable) $ 9,640 Manufacturing overhead incurred $ 10,870 Selling and administrative expense $ 9,350 Actual hours of bandsaw use 124 need to know what would be the dollar amount for the “Cost of Goods Sold”
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