Core: 0 of 20 pts 1 of 1 (0 completely HW Score: 0%, 0 of 20 9-37 (similar to) Question Help Tasty Lager has just purchased the Austin Brewery. The browery is two years old and use absorption costing. It will sell its product to Tosty Lager at $10 per barrel Peter Bryant Tasty Laers contractante following information about Austin Brewery's capacity and budgeted fred manufacturing costs for 2017 (Cack the icon to view the information) Read the requirements Requirement 1. Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacityconcepts. Explain why they are different Budg. Begin by determing the formula to calculate the budgeted fixed manufacturing overhead rale per barrel, then compute the rate for each of the denominator vel capacity concepts Abbreviations budgeted, MOH- manufacturing overhead. Round the rates to the nearest cont.) Budgeted forced MOH rate per bare Budgeted Fixed Manufacturing Overhead per Period 28,100,000 28,100,000 28,100,000 Days of Hours of Production Production per Period per Day 360 Barrels per Hour 600 Denominator-Level Capacity Concept Theoretical capacity Practical capacity Normal capacity utilization Master-budget capacity for each half year (a) January - June 2017 (b) July --December 2017 520 340 340 405 170 340 14,050,000 14,050,000 170 470 Print Done click Check Answer. 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 Austin Brewery reported these production results: Beginning inventory in barrels, 1-1-2017 Production in barrels 2,620,000 Ending inventory in barrels, 12-31-2017 200,000 Actual variable manufacturing costs $ 78,731,000 Actual fixed manufacturing overhead costs $ 27,600,000 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 Austin Brewery's operating income when the denominator-level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization. Print Done