Berkner Company uses standard costing. Tim Monachino, the new president of Berkner Company, is presented with the following data for 2020: Requirement 1. At what percentage of denominator level was the plant operating during 2020? Determine the formula, then compute at what percentage of denominator level the plant was operating during 2020. (Abbreviation used: "mfg" = manufacturing.) % of denominator level % Requirements 1. At what percentage of denominator level was the plant operating curing 2020? 2. How much fixed manufacturing overhead was included in the 2019 and the 2020 encing Inventory under absorption costing? 3. Reconcile and explain the difference in 2020 operating incomes under variable and absorption costing. 4. Tim Monschino is concamed: He notes that despite an increase in sales over 2019, 2020 operating income has actually declined under absorption costing. Explain how this occurred. Print Done Data table B 1 Berkner Company 2 Income Statements for the Year Ended December 31, 2020 Variable Absorption Costing Costing 3 4 Revenues 5 Cost of goods sold (at standard costs) $ 9,350,000 $9,350,000 4,685,000 5,840,000 Fixed manufacturing overhead (budgeted) Fixed manufacturing overhead variances (all 7 unfavorable): 1,000,000 8 Spending 9 Production volume 10 Total marketing and administrative costs (all fixed) 11 Total costs 12 Operating income 13 Inventories (at standard costs) 14 December 31, 2019 15 December 31, 2020 Print Done 95,000 95.000 0 340,000 1,550,000 1,550,000 7,825,000 7,330,000 $ 2,020,000 $ 1,525,000 $ 1,090,000 $ 1,740,000 50,000 205.000