9-37 (book/static) Question Help- X Data Table Castle Lager has just purchased the controller, obtains the following inform (Click the icon to view the informa per barrel. Peter Bryant, Castle Lager's Budgeted Fixed Days of Hours of Read the reguirements Denominator-Level Manufacturing Production Production Barrels Capacity Concept Overhead per Period per Period per Day per Hour Requirement 1. Compute the budget fferent. Theoretical capacity 358 27,900,000 22 545 Begin by determing the formula to cal oudgeted, MOH = manufacturing over apacity concepts. (Abbreviations used: Budg Practical capacity $ 348 510 27,900,000 20 348 Normal capacity utilization 27,900,000 20 410 Master-budget capacity for each half year 13,950,000 174 20 315 (a) January-June 2017 (b) July-December 2017 174 505 13.950,000 20 Print Done P9-37 (book/static) Question Help Castle Lager has just purchased the Jacksonville Brewery. The brewery is two years old and uses absorption costing. It will "sell" its product to Castle Lager at $47 per barrel. Peter Bryant, Castle Lager's controller, obtains the tollowing information about Jacksonville Brewery's capacity and budgeted fixed manufacturing costs for 2017: EE(Click the icon to view the information.) Read the reguirements Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. determing the formula to calculate the budgeted fixed manufacturing overhead rate per barrel, then compute the rate for each of the denominator-level capacity concepts. (Abbreviations used: Budg Begin budgeted, MOH manufacturing overhead. Round the rates to the nearest cent.) Budgeted fixed MOH rate per barrel ksonville Bre ion about Ja on.) - X Requirements 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different 2. In 2017, the Jacksonville Brewery reported these production results: fixed manuf Beginning inventory in barrels, 1-1-2017 0 late the budg ead. Round t Production in barrels 2,670,000 Ending inventory in barrels, 12-31-2017 210,000 Actual variable manufacturing costs 80,634,000 $26,700,000 Actual fixed manufacturing overhead costs 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. Compute the Jacksonville Brewery's operating income when the denominator-level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization. 9-37 (book/static) Question Help- X Data Table Castle Lager has just purchased the controller, obtains the following inform (Click the icon to view the informa per barrel. Peter Bryant, Castle Lager's Budgeted Fixed Days of Hours of Read the reguirements Denominator-Level Manufacturing Production Production Barrels Capacity Concept Overhead per Period per Period per Day per Hour Requirement 1. Compute the budget fferent. Theoretical capacity 358 27,900,000 22 545 Begin by determing the formula to cal oudgeted, MOH = manufacturing over apacity concepts. (Abbreviations used: Budg Practical capacity $ 348 510 27,900,000 20 348 Normal capacity utilization 27,900,000 20 410 Master-budget capacity for each half year 13,950,000 174 20 315 (a) January-June 2017 (b) July-December 2017 174 505 13.950,000 20 Print Done P9-37 (book/static) Question Help Castle Lager has just purchased the Jacksonville Brewery. The brewery is two years old and uses absorption costing. It will "sell" its product to Castle Lager at $47 per barrel. Peter Bryant, Castle Lager's controller, obtains the tollowing information about Jacksonville Brewery's capacity and budgeted fixed manufacturing costs for 2017: EE(Click the icon to view the information.) Read the reguirements Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different. determing the formula to calculate the budgeted fixed manufacturing overhead rate per barrel, then compute the rate for each of the denominator-level capacity concepts. (Abbreviations used: Budg Begin budgeted, MOH manufacturing overhead. Round the rates to the nearest cent.) Budgeted fixed MOH rate per barrel ksonville Bre ion about Ja on.) - X Requirements 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts. Explain why they are different 2. In 2017, the Jacksonville Brewery reported these production results: fixed manuf Beginning inventory in barrels, 1-1-2017 0 late the budg ead. Round t Production in barrels 2,670,000 Ending inventory in barrels, 12-31-2017 210,000 Actual variable manufacturing costs 80,634,000 $26,700,000 Actual fixed manufacturing overhead costs 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. Compute the Jacksonville Brewery's operating income when the denominator-level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization
