Coble Woodworking Corporation Produces Fine Cabinets

question 12

Multiple Choice

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: 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) $2,450
• B) $0
• C) $24,975
• D) $25,575

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Definitions:

Psychosexual Development

Sigmund Freud's theory proposing that personality development occurs through a series of childhood stages in which the pleasure-seeking energies of the id become focused on certain erogenous areas.

Oral Stage

The attachment of libido to the mouth.

Anal Stage

The second stage in Freud's psychosexual development theory, where pleasure centers on bowel and bladder elimination and coping with demands for control.

Anal-expulsive

Referencing a personality trait associated with disorderliness and impulsivity, drawn from Freudian psychology, relating to early developmental stages.