Answer:
c. $820
Explanation:
The computation of the cost of unused capacity is given below:
But before that following calculations need to be done
The Predetermined overhead rate is
= Manufacturing overhead ÷ capacity of jointer
= $15,580 ÷ 380
= $41 per hour
Given that
Actual use of capacity = 360 hours
Now
Unused hours is
= 380 - 360
= 20 hours
And, finally the cost of unused capacity is
= 20 × $41
= $820