Homework: C... Question 16, P9-37 (simil... HW Score: 80.92%, 16.18 of 20 points Save Part 1 of 13 O Points: 0 of 1 Tasty Lager has just purchased the Chicago Browery. The brewery is two years old and uses absorption costing It will sell its product to Tasty Lager at S14 per barret Peter Bryant, Tasty Lager's controller obtains the following information about Chicago Browery's capacity and budgeted fixed manufacturing costs for 2017 Click the icon to vow the information Read the requirements Requirement 1. Compute the budgeted fixed manutacturing overhead rate per barret for each of the denominator-level capacity concepts. Explain why they are different Begin by determing the formula to calculate the budgeted foved manufacturing overhead rate per bartoi, than compute the rate for each of the denominator level Capacity concepts (Abbreviations used Budg budgetod, MOH manufacturing overhead Round the values to the nearest cont) Budgolod fixed MOH rate por bontot ments ER Compute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts Explain why Data Table Budgeted Fixed Manufacturing Overhead per Period $ 28,300,000 $ 28,300,000 $ 28,300,000 Days of Hours of Production Production Barrels per per Period per Day Hour 362 22 540 354 20 505 Denominator-Level Capacity Concept Theoretical capacity Practical capacity Normal capacity utilization Master-budget capacity utilization for each half year: (a) January-June 2017 (b) July-December 2017 354 20 400 $ 177 20 340 14,150,000 14,150 000 $ 177 20 460 Print Done e Solve This e Text Pages Get More Help Clear All Check Fork: C... Question 16, P9-37 (simil... Part 1 of 13 > HW Score: 80.92%, 16.18 of 20 points O Points: 0 of 1 purchased the Chicago Brewery. The brewery is two years old and uses absorption costing. It will "sell" its product to Tasty Lag Tasty Lager's controller, obtains the following information about Chicago Brewery's capacity and budgeted fixed manufacturing view the information) nts mpute the budgeted fixed manufacturing overhead rate per barrel for each of the denominator-level capacity concepts Explain w the to Abbro denom 1 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 Chicago Brewery reported these production results Beginning inventory in barrels, 1-1-2017 0 Production in barrels 2,650,000 Ending inventory in barrels, 12-31-2017 180.000 Actual variable manufacturing costs $ 80,162 500 Actual fixed manufacturing overhead costs $ 26,800,000 There are no variable cost variances Fixed manufacturing overhead cost vanances are written off to cost of goods sold in the period in which they occur. Compute the Chicago Brewery's operating income when the denominator-level capacity is (a) theoretical capacity. (b) practical capacity, and (c) normal capacity utilization Print Done e Th Che