Castle Lager has just purchased the Denver Brewery. The brewery is 2 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 following information about Denver Brewery's capacity and budgeted fixed manufacturing costs for 2020 BEE (Click the icon to view the information.) Read the requirements Begin by 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 budgeted, MOH manufacturing overhead. Round the rates to the nearest cent.) Theoretical capacity $ Budg fixed MOH per period 27,800,000 Budgeted fixed Budg denominator level (barrels) MOH rate per barrel 4,699,200 $ 5.92 Practical capacity $ 27,800,000- 3,468,000 $ 8.02 Normal capacity utilization $ 27,800,000- 2.754,000 S 10.09 Master-budget capacity for each half year (a) January-June 2020 13,900,000 1,088,000 $ 12.78 $ 13,900,000 1,666,000 $ 8.34 (b) July-December 2020 Explain why they are different Clear all Check answer