Lucky Lager has just purchased the Atlanta Brewery. The brewery is 2 years old and uses absorption costing. It will "sell" its product to Lucky Lager at $47 per barrel. Peter Bryant, Lucky Lager's controller, obtains the following information about Atlanta Brewery's capacity and budgeted fixed manufacturing costs for 2020: : (Click 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 capacity concepts. Explain why they are different. 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.) Budgeted fixed MOH rate per barrel Data table A B Budgeted Fixed Manufacturing 1 Denominator-Level Capacity Concept Overhead per Period 2 Theoretical capacity 27,700,000 3 Practical capacity $ 27,700,000 4 Normal capacity utilization $ 27,700,000 Master-budget capacity utilization for 5 each half year: 6(a) JanuaryJune 2020 13,850,000 7(b) July-December 2020 $ 13,850.000 D E Days of Hours of Production Production Barrels per per Period per Day Hour 350 24 550 348 20 495 348 20 420 174 20 315 174 20 525 Print Done 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 2020, the Atlanta Brewery reported these production results: A B 12 Beginning inventory in barrels, 1-1-2020 0 13 Production in barrels 2,630,000 14 Ending inventory in barrels, 12-31-2020 210,000 15 Actual variable manufacturing costs $ 79,163,000 16 Actual fixed manufacturing overhead costs $ 26,800,000 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 Atlanta Brewery's operating income when the denominator-level capacity is (a) theoretical capacity, (b) practical capacity, and (c) normal capacity utilization