Monette Company uses standard costing. Tim Kerwin, the new president of Monette Company, is presented with the following data for 2020: (Click the icon to view the data.) Read the requirements Requirement 1. At what percentage of denominator level was the plant operating during 2020? Determine the formula, then compute at what percentage of denominator level the plant was operating during 2020. (Abbreviation used: "mfg" = manufacturing.) % of denominator level = % X Data table A B 1 Monette Company 2 Income Statements for the Year Ended December 31, 2020 Variable Absorption 3 Costing Costing 4 Revenues $ 9,150,000 $ 9,150,000 5 Cost of goods sold (at standard costs) 4,675.000 5,880,000 6 Fixed manufacturing overhead (budgeted) 1,400,000 0 Fixed manufacturing overhead variances (all 7 unfavorable) 8 125.000 125.000 Spending Production volume 9 490,000 10 Total marketing and administrative costs all fixed) 1,545,000 1,545,000 11 Total costs 7,745,000 8,040,000 $ 1,405,000 $ 1,110,000 12 Operating income 13 Inventories (at standard costs) 14 December 31, 2019 $ 1,265,000 $ 1,730,000 15 December 31, 2020 50,000 220,000 - Requirements 1. At what percentage of denominator level was the plant operating during 2020? 2. How much fixed manufacturing overhead was included in the 2019 and the 2020 ending inventory under absorption costing? 3. Reconcile and explain the difference in 2020 operating incomes under variable and absorption costing. 4. Tim Kerwin is concerned: He notes that despite an increase in sales over 2019, 2020 operating income has actually declined under absorption costing Explain how this occurred