=+2 In 2015, the Austin Brewery reported these production results:

12 13 14 15 16 A B Beginning inventory in barrels, 1-1-2015 slerrab ni noitcudorP 0000062 Ending inventory in barrels, 31-12-2015 Actual variable manufacturing costs $78 520 000 Actual fixed manufacturing overhead costs $27 088 000 0

200 000 Chapter 7: Cost management, capacity costing and capacity management 293 M07_HORN3377_02_LT_C07.indd 293 2/09/13 3:41 PM There are no variable cost variances. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. Calculate the Austin Brewery’s operating profit when the denominator-level capacity is:

(a) theoretical capacity,