LaChut Company uses standard costing. Tim St$.$ Germaine, the new president of LaChut Company, is presented with the following data for $2021.$

$($Click the icon to view the data.$)$

Required

Required

At what percentage of denominator level was the plant operating during $2021?$

How much fixed manufacturing overhead was included in the $2020$ and the

$2021$ ending inventory under absorption costing?

Reconcile and explain the difference in $2021$ operating incomes under variable

and absorption costing.

Tim St$.$ Germaine is concerned. He notes that despite an increase in sales over

$2020,2021$ operating income has actually declined under absorption costing.

Explain how this occurred.

Data